$1 Billion To Chinese Media Giant Bytedance

$1 Billion To Chinese Media Giant Bytedance

$1 Billion To Chinese Media Giant Bytedance

Musical.ly is a Chinese video social network application for video creation, messaging, and live broadcasting.

Bytedance is set to acquire Musical.ly, a video sharing app with more than 100 million users worldwide, the companies said on Friday.

Musical.ly, founded three years ago in Shanghai, is the first Chinese social media app to make it big in the USA, where it has about 20 million users.

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. Under the terms of Bytedance's Live.me investment, Live.me will have priority to provide live-streaming services to Bytedance in overseas markets.

Musical.ly, which lets users take videos of themselves lip-synching to songs, launched in 2014. The Chinese internet conglomerate also also owns several other short-form video apps for user-generated content.

But artificial-intelligence technology will certainly come into play.

Eleven countries move forward on TPP without US
Moving ahead with TPP would be a boost for the principle of multilateral trade agreements after U.S. International Trade Minister Francois-Philippe Champagne quickly disputed it.

Bytedance operates a suite of products that provide creators and users with a content experience powered by machine and deep learning algorithms.

The company is run by Shanghai-based co-founders Alex Zhu and Luyu Yang.

For now, users shouldn't expect any huge changes for Musical.ly. The startup had raised $147 million to date from investors including GGV Capital, GX Capital, Qiming Venture Partners and Susquehanna International Group.

Additionally, Musical.ly will work with Bytedance to develop its presence in new markets including China, Japan, Korea and Southeast Asia, where Bytedance already has a strong footprint.

Bytedance is also known for their mobile app called, Jinri Toutiao, meaning "Today's Headlines" that releases news and videos from hudreds of media outlets. The company recently bought aggregation platform News Republic from Cheetah Mobile, which is also an investor in Musical.ly, for United States dollars 86.6 million. Bytedance, a leading AI-powered content platform, is buying the video-based social network in a deal reportedly valued at $800 million. This summer, Reddit raised $200 million in new funding, giving it a valuation of $1.8 billion.

Related news