Musical.ly Sold for $1 Billion

Musical.ly Sold for $1 Billion

Beijing ByteDance Technology has bought teen social video app Musical.ly for around United States dollars 800 million, Bloomberg reported, citing sources familiar with the deal.

Financial terms of the deal weren't included in today's announcement, but news reports put the deal's value at between $800 million and $1 billion. A separate live-streaming app, Live.ly, has made deals with USA broadcasters Viacom and NBC Universal to produce original programming.

The only Chinese social-media company to build a major network outside China will be taken over by a fast-growing Chinese upstart. Musical.ly has risen to prominence among a teenage and tween audience by enabling users to record quick videos set to music. Founded three years ago, this social media app is popular with young people and generates over 60 million monthly active users, reaching to other countries such as the US and Europe as well. The startup's struck deals with media firms including Viacom Inc and Comcast Corp's NBCUniversal to make original shows.

"[By] integrating Musical.ly's global reach with ByteDance's massive user base in China and key Asian markets, we are creating a significant global platform for our content creators and brands to engage with new markets", Zhang Yiming, ByteDance's CEO, said in a statement.

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Toutiao has become one of the world's largest news aggregators since its 2014 startup. The company was valued at $11 billion in June, according to CB Insights, and is now reportedly worth $20 billion.

Bytedance wants to become a global success by turning its artificial intelligence tools on the rest of the world. The company recently bought aggregation platform News Republic from Cheetah Mobile, which is also an investor in Musical.ly, for Dollars 86.6 million.

The company's overseas efforts are now spearheaded by TopBuzz, an app similar to its core offering in China, and Flipagram, a video platform acquired in February this year.

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