Chinese Media Startup Toutiao to Purchase Musical.ly for $800M-$1B

Alan Olson
November 12, 2017

"It was organic growth - word-of-mouth", Musical.ly's North American president Alex Hofmann told Billboard previous year, when the app was adding 13 million users a month.

As one of the fastest growing tech startups in China, Bytedance has been given valuations up to as high as $20 billion. It also has a live-streaming platform called live.ly.

Toutiao's purchase of Flipagram, Musical.ly's primary rival in the self-shot-video-accompanied-by-music market, gives Bytedance dominance in soundtracks to personal videos.

New Injustice 2 DLC Characters Include Teenage Mutant Ninja Turtles
Atom will be available for early access on December 12th before being joined by Enchantress in January and the TMNT in February. The latest DLC pack for Injustice 2, Fighter Pack 3 , will have the surprise inclusion of the Teenage Mutant Ninja Turtles .

Terry Crews Files Police Report After Sexual Assault Claim
He added that he hoped his coming forward "will deter a predator and encourage someone who feels hopeless". Black Man stomps out Hollywood Honcho' would have been the headline the next day".

United States to stage drill with three carriers as Trump visits Asia
The last time a three-carrier group took part in exercises like this was in 2006 and 2007 during drills off the coast of Guam. The regime added that Trump's very visit to South Korea was meant to "light the fuse for a nuclear war".

ByteDance's Toutiao app uses AI to analyse readers' habits and send them customised content. The negotiations broke down over financial deal terms and "general skittishness" about selling to a company whose revenue numbers and user stats were hard to assess, per the report. The startup would gain a huge United States presence, with the addition of Musical.ly's 100 million-strong contingent of lip-synching video performers to Toutiao's own 120 million readers and viewers. Bloomberg has reported it is also looking to make interactive content for a younger audience. The app's cofounders, Alex Zhu and Louis Yang, will join Bytedance and will continue running Musical.ly as an independent platform. Its parent company was valued at more than $20 billion, according to a person familiar with the matter, on par with Elon Musk's SpaceX.

Started by Zhang Yiming (張一鳴), it is on track to pull in about US$2.5 billion in revenue this year, largely from advertising. Bytedance wants to become a global success by bringing its artificial intelligence tools to the rest of the world.

The company behind China's hottest news app is buying one of the country's biggest social media platforms. The company recently bought aggregation platform News Republic from Cheetah Mobile, which is also an investor in Musical.ly, for Dollars 86.6 million.

Other reports by GlobalViralNews

Discuss This Article

FOLLOW OUR NEWSPAPER