Bytedance, which is the parent company of TikTok, acquires Amcare Healthcare for $1.5 billion according to Bloomberg. Founded in 2006, Amcare Helathcare is a high-end healthcare organization that provides services of maternity care, pediatrics, and women’s health. Besides, it operates the main brand of Amcare Healthcare in China, which is Amcare Women’s & Children’s Hospital. The acquisition has been made by ByteDance’s healthcare unit in China – Xiaohe Health.
The reason for expansion in healthcare sector was not disclosed so far by Xiaohe Health. However, it is a trend for tech companies that helps them find new customers. It is rather common for companies in the USA and China, since it becomes a part of diversification strategy when they can use their capital and user base. For example, Tencent has tried to open its clinics, Alibaba and JD.com operate in online pharmacies.
ByteDance started its way in healthcare in 2020 when it bought a company that provides masses with health information. Later, it became Xiaohe Health, which portfolio, as of now, includes drug discovery company and the company that focused on DNA synthesis. The ByteDance’s way of funneling users from one older platform to the younger one, help latter grow. Its platform Douyin that in 2020 had more than 600 million daily active users could promote new healthcare services through its video clips.