AirAsia has made many acquisitions in the past, but this time around, it is a major one.

In a recent report by Nikkei Asia, AirAsia will be taking over Gojek's business in Thailand.

Key Information

• AirAsia will be acquiring Gojek's business in Thailand in an all-stock deal.
  
• Upon the acquisition, Gojek will own a 4.76% stake in AirAsia's "superapp" business.
• Moving forward, Gojek's app in Thailand will cease to operate by end of July, with AirAsia's "superapp" taking over from August.
• AirAsia CEO Tony Fernandes added that there will be "no redundancies arising from the transition".

Why It Matters

• Gojek's business in Thailand is presently valued at around $50 million, while AirAsia's superapp business is valued at around $1 billion.
  
• AirAsia has been aggressively diversifying their business in various areas outside of travel, with hopes that it will drive significant revenues and survivability for the company during the pandemic.
• Gojek has also realized that the company hasn't been effectively been able to commit the right resources to Thailand, and decided to combine forces with AirAsia.