Social media music lip-syncing app Musical.ly, beloved of middle schoolers and teens, has been bought by Beijing Bytedance Technology for at least $800 million.
Bytedance, a company worth as much as $20 billion and which produces the Toutiao news aggregation app, announced the news Friday morning, according to widespread media reports.
The announcement did not include the financial terms of the deal, but unnamed sources speaking to Bloomberg News and The Wall Street Journal put the price in the range of $800 million to $1 billion.
The app was founded in Shanghai in 2014. It lets users lip-sync Karaoke style to short videos or sing and dance along and upload the clips to the site. Users can like, share and comment on the clips.
The app is very popular and reportedly has more than 200 million users. Earlier this year, Musical.ly did an integration deal with Apple Music (AAPL). Last year, it signed a label licensing deal with Warner Music.
According to the company, it is based in Shanghai and has an office in Santa Monica, Calif. It reportedly has about 60 million monthly active users.
The Wall Street Journal reported that the transaction is expected to close as soon as the end of this month and that it will expand Bytedance's reach in the North American and European markets.