Bytedance, a company valued at $20 billion and which produces the Toutiao news aggregation app, announced the news on Friday morning but did not announce the financial terms, according to Bloomberg.
Musical.ly lets users lip-sync along to short music clips or sing and dance a capella and upload it to the site. Users can share, like and comment on the clips, which run between 15 seconds and a minute in length.
Musical.ly, founded in Shanghai by Louis Yang and Alex Zhu in 2014, reached 90 million downloads within two years.
Musical.ly isn't the first social app to attract high bids afterfor a reported $1 billion and a year later.