More acquisitions are surfacing in the Far East Asian market as China’s Toutiao is set to acquire Musical.ly in a deal worth up to USD1 billion.
Toutiao is a China-based news and information content platform powered by artificial intelligence technology but can easily be referred to as a social network.
Musical.ly is a music lip-synching app which has gained massive usage among young people in the United States.
According to a source quoted by Techcrunch, Bytedance, the company behind Toutiao, will pay between $800 million and $1 billion to buy Musical.ly, which claims 60 million users most of whom are based in the U.S.
Despite being an American sensation, Musical.ly is a Shanghai-based company with both local and Silicon Valley investors such as Greylock Partners, GGV Capital, DCM and Qiming.
These are the people having a field day as the company was valued at just about USD500 million when it did its last funding rounds in 2016.