TikTok's Singapore competitor Lomotif acquired for $125 million

TikTok's Singapore competitor Lomotif acquired for $125 million

According to Bloomberg, a group of investors including global media and entertainment company ZASH have announced that they will acquire Singapore-based video sharing platform Lomotif for US$125 million, with ZASH owning 80% of the company.



According to ZASH, Lomotif’s average monthly community size has grown by 400% over the past three years, and the platform has posted and shared more than 740 million videos since it opened in 2014.

 

ZASH believes that Lomotif is one of the fastest-growing video-sharing platforms in Latin America, Asia, Europe and West Africa , so the acquisition of Lomotif could help it surpass TikTok and Kuaishou short video platforms to become a global top player in the industry.

 

Jaeson Ma, co-founder of ZASH , also said that Lomotif is a global platform with many followers in Latin America and Asia. In the future , ZASH will work with Lomotif to replicate this successful experience in the United States and other markets .

 

Short video apps have become wildly popular among teens and millennials, and while TikTok started the trend, many other similar apps have also gained a sizeable share of customers, such as Instagram’s Reels and Dubsmash.

 

According to a research report published by Grand View Research , the global video market value has reached US$50.1 billion in 2020 , and is expected to grow at a compound annual growth rate of 21% from 2021 to 2028. Another report pointed out that the scale of global online video platforms in the media and entertainment sector was US$218 million in 2016, but it is expected that this market size will reach US$915 million by 2025 .

 

It is no wonder that so many companies want to enter the online video market through acquisition or investment.

 

Interestingly, after TikTok was ruthlessly banned by the Indian government, TikTok's parent company ByteDance also planned to establish its Asia-Pacific center in Singapore.

 

Data analysis company GlobalData pointed out that TikTok is laying off employees in India and will increase its recruitment efforts in Singapore. Data shows that since August 2020, about 25% of the total job postings of TikTok's parent company ByteDance have been located in Singapore.

 

GlobalData 's business fundamentals analyst expressed his views on this, saying: " ByteDance is planning to make Singapore a hub for the Asia-Pacific region outside of China in an effort to seek a neutral position amid the US-China trade tensions. "

 

As a result, TikTok and Lomotif are likely to face off in Singapore. In the future, there will be more and more competitors who want to enter the video field, and their financial resources will become stronger and stronger. If TikTok wants to continue to "dominate", it may need to win several "fierce battles".

TikTok

Lomotif

<<:  Newegg emerges as a dark horse and is listed as China's excellent cross-border e-commerce platform

>>:  Japan ranks 9th in the world in terms of Covid resilience, and its “difficult” road to fighting the epidemic

Recommend

What is Merchanly? Merchanly Review, Features

Merchanly allows you to list and manage all your ...

Outrageous! The order was shipped in February, but it is still stuck in Shanghai

According to foreign media reports, part of an or...

What is Very? Very Review, Features

The British Very department store e-commerce webs...

Dominating the hot search list! Sales of this product soared 2061%

During the 2020 epidemic, many categories have be...

Shenzhen's hot IPO was suspended

In the past two years, global mobile phone shipme...

What is Lelong.my? Lelong.my Review, Features

Lelong.my is the oldest e-commerce platform in Ma...

Tmall Global adds new food safety management system

It is reported that Tmall International released ...

What is Shop Box? Shop Box Review, Features

The ShopBox product is designed to provide a safe...

What is Tenghui E-commerce? Tenghui E-commerce Review, Features

Shenzhen Tenghui E-commerce Co., Ltd. is a cross-b...

What is Rakuma(Fril.jp)? Rakuma(Fril.jp) Review, Features

Rakuma is a shopping website launched by Japan...