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Published: Mon, November 13, 2017
Research | By Jennifer Evans

$1 Billion To Chinese Media Giant Bytedance

$1 Billion To Chinese Media Giant Bytedance

Inc., maker of the lip-syncing video app popular among teens, has reportedly been sold to China's Beijing ByteDance Technology Co. for about $800 million. 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 USA and Europe as well.

The startup acquires a big American occurrence, tallying Musical.ly's 100 million - stout deputation of lip - syncing video performers to Toutiao's own 120 million readers and viewers, at the same time as potentially tacking on a social media constituent to its bread and butter news submission.

The company also made deals with Viacom, NBC Universal, and Hearst Magazine earlier this year to produce original content aimed at younger audiences.

As one of the fastest growing tech startups in China, Bytedance has been given valuations up to as high as $20 billion.

Bytedance, meanwhile, is best known for the Toutiao app, which uses artificial intelligence to create customized news feeds for its users.

"Musical.ly's vision is to make entertainment more personal, participatory and interactive, by enabling anyone to be a content creator", explained Yang and Zhu in a joint statement. It'll continue to run as a separate platform, Bytedance said.

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. Its parent company ByteDance is valued at over Dollars 20 billion, according to a person familiar with the matter.

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.

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