Two years ago, questions emerged about whether TikTok was evolving into a record company. The video platform — owned by Beijing-based ByteDance Ltd. — launched the SoundOn music distribution service and hired Artists & Repertoire executives.
On Tuesday, June 18, Music Business Worldwide (MBW)revealed that TikTok is advancing this plan.
What Happened: TikTok is establishing a Music Content Investment Team based in Los Angeles, New York, and San Jose. The team’s goal is to explore global partnership or acquisition opportunities in the music content sector.
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MBW cites job ads for the creation of the team, indicating TikTok’s intent to move into the music M&A market.
The team aims to “evaluate market opportunities, execute partnership or acquisition projects, and perform detailed financial analysis and valuations of music content and related assets.”
The first role advertised is for a Music Content Investment Manager, requiring at least three years of experience in investment banking, management consulting, or private equity. This position involves developing investment strategies and presenting insights to senior management to shape TikTok’s music business future.
The second, more senior role is for a Music Content Investment Lead, who will “formulate and implement investment strategies aligned with TikTok's objectives in music content operations.” Candidates need a background in finance or economics and at least five years of relevant experience. This role includes overseeing financial valuation models and assessing the music investment landscape.
Why It Matters: TikTok’s latest move into music rights acquisition may concern major music rights holders. A potential strategy could involve enhancing the SoundOn service by retaining more control over the music of viral artists developed through the platform, possibly offering deals to these artists before major record companies can.
TikTok might also prioritize promoting content it owns, balancing this with the promotion of major label music.
Additionally, TikTok could acquire less popular back catalogs with viral potential or explore acquisitions in the generative AI space to bolster its capabilities.
This strategy mirrors other tech giants like Apple Inc (NASDAQ:AAPL) and Spotify Technology SA (NYSE:SPOT), who have previously acquired startups to integrate into their platforms.
Meanwhile, TikTok is still under government scrutiny. ByteDance has until Jan. 19 to complete a sale. Or else, TikTok might get banned, the White House says, citing Chinese-based ownership as a national security concern.
Read Next: TikTok Tests Hour-Long Videos – What You Need To Know
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