Three years ago, Musical.ly didn’t exist. Now a app, that lets teenagers make videos of themselves lip-syncing, is set to sell for during slightest $800 million.
The Shanghai-based association has concluded to sell to Jinri Toutiao, a Chinese media startup that had already bought Flipagram, that competed to some grade with Musical.ly, progressing this year.
The understanding hasn’t sealed yet, though Bloomberg pegs a cost during $800 million, while a Wall Street Journal puts it during “$800 million to $1 billion,” that is a operation I’ve heard. Without a open avowal of a price, you’re generally protected betting on a reduce series on deals like these, and presumption that a bigger series includes hard-to-hit earnout targets.
Musical.ly is engaging for a garland of reasons:
- It’s demonstrative of a startling arena a strike app can enjoy, fueled by a worldwide race of mobile phone owners.
- It’s a initial Chinese-bred amicable app to suffer genuine success in a U.S.
- It might be a many successful video app not owned by an internet hulk like Facebook or Google.
- It effectively served as a amicable and messaging app for a really immature user bottom — likely too immature to be regulating amicable and messaging apps.
The caveat: The fact that Muscial.ly is offered 3 years after launch, and a year after a appropriation turn that reportedly valued a association around $500 million, is an indicator that a owners trust a expansion bend has flattened out.
The association says it has 60 million users, though I’m told that it acquired many of them in a initial dual years of a existence, and that it hasn’t been means to enhance over a tweens and teenagers that initial adopted a app.
For what it’s worth, a Google Trends query shows a rise in a summer of 2016. Which might not map with tangible user numbers, though seems directionally correct: