Chinese Media Giant to Buy Karaoke App Musical.ly for $800 Million

Jinri Toutiao, the giant Chinese media startup, is close to acquiring buzzy teen social video app Musical.ly for about $800 million, according to people familiar with the deal.

Toutiao may announce a deal soon, the people said, asking not to be identified discussing a private matter. The acquisition represents the biggest venture abroad thus far for a Chinese startup valued at $20 billion that’s already one of the world’s largest news services.

Toutiao gains a big American presence, adding Musical.ly’s 100 million-strong contingent of lip-synching video performers to its own 120 million readers and viewers, while potentially tacking on a social media component to its bread-and-butter news offering. Musical.ly, founded in Shanghai by Luyu Yang and Alex Zhu in 2014, exploded in popularity among American teens in 2016 and has since expanded beyond its flagship app for creating and sharing personal music videos.

In 2016, it rolled out a live-streaming app called Live.ly. The startup’s struck deals with media firms including Viacom Inc. and Comcast Corp.’s NBCUniversal to make original shows. Bloomberg has reported it’s also looking to make interactive content for a younger audience. Hearst’s “Seventeen” magazine has said it’ll devise a slate of shows focused on fashion and beauty for Musical.ly. 

Toutiao beat out rival bidders including Kuaishou, the viral video streaming service, the people said. Representatives for Toutiao and Musical.ly declined to comment.

Beijing ByteDance Technology Co.’s Jinri Toutiao — or “Today’s Headlines” – is one of the few Chinese internet operations to have found success without the backing of one of the country’s three biggest industry players: Tencent Holdings Ltd., Baidu Inc. and Alibaba Group Holding Ltd. Now all three are refining their own news apps to try and steal business from Toutiao.

Toutiao aggregates news and videos from hundreds of media outlets and has become one of the world’s largest news services in the span of five years. It 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, it’s on track to pull in about $2.5 billion in revenue this year, largely from advertising. 

Read more: In Battle for Talent, One Startup Founder Tries ’Unlimited’ Pay

    More From this publisher : HERE

      Recommended Products

    • Pinflux Elite Monthly Pinflux is the most powerful Pinterest marketing software.
    • ReplyTap Pro ReplyTap – The Most Advanced Video Chat lead generation and support platform with extensive screen share, live support, Customer Support and Knowledgebase features.
    • Syndranker: Elite SyndRanker - Elite - 5000 Syndications per month - 50 RSS Feed Campaigns - 15 Apps including, FB Page, FB Timeline, Medium, Pinterest, Bitly, EverNote, Flickr. - Detailed Reporting - Schedule Campaigns
    • Commission Gorilla V2 PRO UPGRADE The Ultimate Promotion Page Builder PRO UPGRADE - Lifetime Access + Free Hosting and Bonuses Included

    Tags: ALIBABA GROUP HOLDING-SP ADR Apps BAIDU INC - SPON ADR Beijing COMCAST CORP-CLASS A Elon Reeve Musk Shanghai Social Media technology TENCENT HOLDINGS LTD VIACOM INC-CLASS B

    Related Post "Chinese Media Giant to Buy Karaoke App Musical.ly for $800 Million"

    Facebook Is Still In Denial About Fake News
    This afternoon—after months of deflections and evasions
    Jamie Dimon Slams Bitcoin as a Fraud
    JPMorgan Chase & Co. Chief Executive Officer