Shanghai video based lip syncing app, Musical.ly, has been sold for $1 billion to Chinese tech giant Bytedance. 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 U.S. and Europe as well. This acquisition could help both companies expand their market reach and tap into each other’s technological capabilities. A significant global platform will be created in the massive user base in China and other key Asian markets where content creators and brand engage with newer markets.
The Musical.ly app allows users to share 15 second videos of lip syncing popular songs and making funny faces. Users can change the speed of videos, play video backwards, and can even add filters.
The company also made deals with Viacom, NBC Universal, and Hearst Magazine earlier this year to produce original content aimed at younger audiences.
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. Bytedance has become one of China’s hottest tech start ups valuing at about $20 billion. The firm also acquired News Republic for $87 million earlier this week.
“Musical.ly will continue to operate as an independent platform, integrating Bytedance’s global leading AI technology and leveraging its reach in China and key markets across Asia to enhance Musical.ly’s offering to users, creators, and partners,” the two companies said in a statement.