China’s Toutiao is acquiring Musical.ly for about USD1 billion

China’s Toutiao is acquiring Musical.ly for about USD1 billion

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.