After much anticipation, Gojek and Tokopedia have officially announced their merger, with the new name of GoTo.
The joining of the two companies is the largest business collaboration in Indonesia as well as the largest collaboration between two internet and media service companies in Asia to date.
Responding to the merger of the two digital giants, various people posted positive comments along with jokes. This is an indicator of both companies have successfully won the hearts of around 100 million monthly active users.
What is the impact on consumers and partners after the merger of the company?
The euphoria of welcoming GoTo’s emergence hasn’t been confined to social media. Capital market investors have rallied due to previous speculation that Gojek will float on the Indonesian Stock Exchange (IDX) after its merger with Tokopedia.
Investors will need to wait. Quoting a statement from the IDX’s Director of Corporate Assessment, I Gede Nyoman Yetna, his party hasn’t received news regarding submission for an IPO plan from Gojek, Tokopedia, or a joint entity of the two.
However, the IDX management is ready to accept and process all applications for companies planning an IPO to list their shares on the IDX. For IPO matters, Gede stated that this was a strategic company decision.
Tokopedia CEO William Tanuwijaya hasn’t yet spoken of GoTo’s IPO. What is clear is that the sale of shares to the public will be released sometime this year. Meanwhile, Gojek founder and CEO Kevin Aluwi have said that the IPO process is still ongoing.
For the time being, management has focussed on completing the formation of GoTo. The biggest task today is to ensure a smooth and optimized integration.
With the announcement of the new GoTo brand, will a new application be submitted under the name of the merged company?
William Tanuwijaya answered firmly that there was no new application because GoTo was the holding company for Gojek and Tokopedia. The business line of the holding company is Gojek for transportation and the delivery of goods and food, while Tokopedia remains focussed on online buying and selling services.
Meanwhile, Gopay will concentrate on financial services. Reportedly, Gopay will acquire a bank to expand its business wings.
An example of this type of business structure is like Google and YouTube both being held under a holding company called Alphabet. photo courtesy tokopedia.com
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