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Social-Media App Musical.ly Is Acquired for as Much as $1B

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11–20 of 98 posts

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#11

Earlier quoted context omitted.

It certainly grew fast, no question. It's not a behemoth however. It has 1/5th the sales of CBS, which is just one of dozens of big US media companies. It's very unlikely they'll be able to invade the US in a meaningful sense. Toutiao's primary business is media content aggregation. They're going to be incapable of presenting non-censored news, content, media. The CPC will require that anything they allow in their pu…

But it would be interesting to see how they use musical.ly. Toutiao has AI capabilities and I think they want to make use of the lip-syncing ability.

I agree and I actually would expect Toutiao to do plenty of innovative things within the space they can work in, within the confines of what's allowed.

I would expect one of these companies will want to attempt what Sony did and accumulate a music business. The question will be how they can manage to align that with the media restrictions they have to live within. Maybe Toutiao is young enough to still dare to attempt it, I think the older, larger Chinese Internet companies long ago learned to avoid challenging the CPC's boundaries.

In a less restricted atmosphere, companies like Snapchat or Twitter would be prime take-over targets for some of the Chinese giants looking for international expansion. I think a company like Tencent might have acquired Twitter by now if they could operate the platform without censorship trouble.

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#12

Earlier quoted context omitted.

But it would be interesting to see how they use musical.ly. Toutiao has AI capabilities and I think they want to make use of the lip-syncing ability.

I agree and I actually would expect Toutiao to do plenty of innovative things within the space they can work in, within the confines of what's allowed. I would expect one of these companies will want to attempt what Sony did and accumulate a music business. The question will be how they can manage to align that with the media restrictions they have to live within. Maybe Toutiao is young enough to still dare to attemp…

I agree with you. When it comes to media restrictions, there are a lot of challenges chinese companies will face. In Musical.ly's case, it is an app. More importantly, a teen app - a market, companies have been trying to target and succeed but have been unable to barring a few (Snap amongst the list).

When it comes to app, companies will be ready to compromise to get as much data as possible (available).

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#13

my kids haven't touched this app for a year, nor have any of their friends...it seemed to be intensely popular for two weeks

I can't imagine that no one uses the app if it was just acquired for a billion dollars. It's possible your experience is not representative.

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#15
post #14

Is my maths right? It works out at $13+ per active user. (Ignoring the various, dubious definitions of active.) Seems high given that, as noted in the article, the sale implies the owners think growth has plateaued.

By your same math, Snap currently works out to $90 per DAU. Whether the model is sound is up in the air, but IMO Musical.ly / Live.ly's product is very similar to snapchat.

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#16

my kids haven't touched this app for a year, nor have any of their friends...it seemed to be intensely popular for two weeks

I will have to ask my kids and their cousins tonight :)

I remember when it was everywhere, and I remember being a bit concerned really, and yet thinking about it I don't recall it being mentioned in the past 6 months or so at least... maybe everyone moved on. On to what?

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#17

my kids haven't touched this app for a year, nor have any of their friends...it seemed to be intensely popular for two weeks

My youngest daughter, 11, uses it. In the school I work in it seems to be a cause of much disagreement within girl friend groups, 11 and under. Is the huge valuation because it attracts this type of user, no doubt extremely valuable to marketeers, which seems a bit cynical to me.

Re: Social-Media App Musical.ly Is Acquired for as Much as $1B

#19
post #3

$1Billion for Musical.ly? Did people even use the app?

One of those few apps which cracked the teen and tween (as they call it) market

don’t underestimate how much investors value products that look like they’ve cracked the gen z riddle
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