ByteDance, TikTok’s parent company, has purchased a slew of hospitals from a Chinese hospital chain for about $1.5 billion ($10 billion yuan). The company, as well as its subsidiaries, mainly known for its short-form video platform, TikTok, and its Chinese counterpart, Douyin, is now the full owner of Amcare, according to Bloomberg.
This has gotten some people asking, why have they done this? The short answer is simply, because money. The company, which is based in China, has begun purchasing other sectors in the past few years. It is also allegedly working on its own streaming music platform as well.
This actually isn’t ByteDance’s first foray in moving into the Chinese healthcare industry, valued at about 6.22 trillion yuan, which comes to about $1 trillion. They’ve previously bought Baikemy.com, an online medical encyclopedia in 2020 and then they developed as app that connects doctors to patients across the country. It gives them the ability to text photos and information about patients’ illnesses in order to get diagnosis.
Now that ByteDance has bought Amcare, it is one of the largest purchases since the Chinese government has begun to crack down on tech giants, when they began to implement anti-monopoly laws as they believe tech companies are getting too powerful.
ByteDance is not the only company to do this, Amazon recently bought One Medical for $3.9 billion. One Medical is a company that works in online healthcare and virtual appointments.