Toutiao buys lip sync app Musical.ly for up to $1 billion
Toutiao, a Chinese personalized news app, has agreed to acquire lip-sync app Musical.ly. No financial terms were disclosed, but word is the price-tag was between $800 million and $1 billion, via a mixture of cash and stock.
Why it matters Beyond the fact that a VC-backed company is paying unicorn prices for another VC-backed company that has a demographic shelf life? Okay, how about because this deal was actually competitive, and helps Toutiao play offense against the Chinese tech trinity — Alibaba, Baidu and Tencent — that is trying to eat into its core business.