The Acquisition of Musical.ly Is Either Ridiculously Expensive or Insanely Cheap
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Last Friday, it was reported that Chinese company Bytedance is acquiring social video app Musical.ly for $800 million to $1 billion.
Musical.ly is an app that lets users upload short-form music videos, with reported users ranging from 60 million (TechCrunch) to 200 million (Digiday). Musical.ly has been on my radar as an up-and-comer with potential for being the next Snapchat or Vine. Ask anyone who knows a tween with a smartphone and chances are, they love Musical.ly. So the acquisition news is not a surprise in a space where companies like Facebook often buy or copy their competition.
What caught my attention was the valuation. Musical.ly is not in the same consideration set as Facebook, Instagram, Twitter and YouTube. On the face of it, this acquisition seems expensive, and my first thought was how crazy that price was.
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