Chinese News App Toutiao’s Enterprise Value Rises $11 Billion In Five Years

China’s mobile news service, which features artificial intelligence (AI) based customized editing and a variety of one-person media has grown into a major IT.

This is the talk of “Toutiao,” who won the top spot in China’s mobile news app application last year.

According to the portal industry, Toutiao, which means ‘today’s headline’, will select the major news items that users may be interested in through AI when users register their social network service (SNS) account such as QQ or Weibo.

It has attracted great interest since its release in China in 2012 due to the advantage that AI analyzes the user’s tastes and behavior and provides optimized editing for the individual. AI news editing is a promising field that is spurring commercialization of Korean portals such as Naver and Kakao.

Content diversity is also a key weapon. In addition to news such as large-scale media and public institutions, it attracted more than 300,000 contents from one person’s media, including blogs, and broadened the scope of reading.

China has a strong government oversight of the mainstream media. As such, the strategy of emphasizing the one-person media has increased the dynamics of the content.

As of the end of last year, Toutiao’s cumulative number of users exceeded 600 million. About half of the 1.3 billion people in China use Toutiao. There are tens of thousands of comments and “likes” in popular articles, which are the main mirror of Chinese public opinion.

Toutiao sold more than 10 billion yuan in mobile app advertising last year and its enterprise value as of December last year was estimated to be up to $ 11 billion.

In February of this year, he acquired the US popular video app “Flipagram.”

Because of this popularity, Toutiao in China is being evaluated as shaking up the Chinese IT industry, known as ‘BAT’ (Baidu, Alibaba, Tencent).

In particular, Toutiao is gradually threatening Baidu’s position as sales are steadily declining, and it is observed that BAT has been reorganized into “TAT” (Toutiao, Alibaba, Tencent).

Toutiao is trying to grow as a comprehensive IT service, not only in the news but also in strengthening the contents of the entertainment sector and linking with shopping malls.

Still, the worries about the future are not short. In the context of a single-media center that lacks public confidence, the issue of fake news and advertisements is circulating in large quantities.

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