The application for smartphones Musical.ly quickly became a viral sensation after launch three years ago. The concept was simple: creating 15-second video clips. Teenagers became obsessed with the idea of lip sync with their favorite songs. By 2016, it attracted 100 million users. The startup also allowed the world to learn about new celebrities in social networks.
But the fun, apparently, reached its peak, which was one of the reasons for the sale. According to Recode, most of its users Musical.ly were acquired in the first two years, and the application base did not greatly expand beyond the audience of teenagers and young people.
When the decision to sell was taken by the company’s management, Bytedance decided to purchase the startup project Musical.ly. This transaction is mutually beneficial. According to Musical.ly, they want to use Bytedance technology. For Bytedance, this deal is important for another reason: they are interested in venture capital markets and new areas for growth. Currently, its user base is mainly in China, Japan, Korea and other countries in Asia. Like Flipagram, Musical.ly attracted a large audience in the US along with Europe, South America and India. This is a chance for Bytedance to expand into new regions.
Earlier it was reported that the company GitLab acquired chat Gitter, whose transaction was also useful and brought benefits for both parties.