Financial terms of the deal weren't included in today's announcement, but news reports put the deal's value at between $800 million and $1 billion.
Toutiao aggregates news and videos from hundreds of media outlets and has become one of the world's largest news services over its five years.
Lip-sync app Musical.ly has been scooped up by Beijing ByteDance Technology Co., or simply ByteDance, the Chinese startup behind news site Jinri Toutiao, the company announced on Friday. Bytedance is already a household name in China, where its Toutiao information and content-recommendation service garners north of 120 million daily active users in the country - and is on track to generate about $2.5 billion in revenue this year.
Toutiao's users are primarily based in China, so the move is seen as a way to tap into other markets. "Bytedance's leading AI technologies and top-notch AI developers can empower us to innovate faster and roll out new user offerings unlike anything users have experienced before". Musical.ly, founded in Shanghai by Louis Yang and Alex Zhu in 2014, exploded in reputation among American teens in 2016 and had since enlarged ahead of its flagship app for generating and sharing delicate music videos.
Musical.ly is a Chinese video social network application for video creation, messaging, and live broadcasting. Bytedance beat out viral video streaming service Kuaishou to get Musical.ly, the sources added.
Bytedance operates a suite of products that provide creators and users with a content experience powered by machine and deep learning algorithms.
"[By] integrating Musical.ly's global reach with ByteDance's massive user base in China and key Asian markets, we are creating a significant global platform for our content creators and brands to engage with new markets", Zhang Yiming, ByteDance's CEO, said in a statement.