Luo Yonghao, the Smartisan founder who announced to enter the e-commerce industry reported by PingWest earlier, inked a partnership with Chinese short-video giant Douyin, people familiar with the matter told Tech618, adding that the public announcement of the partnership will come later.
Douyin’s parent company Bytedance did not reply to Tech618’s request for confirmation.
Besides internet traffic subsidy to Luo by Douyin, the two parties signed a 60 million partnership agreement, people mentioned above said.
“Luo and Douyin almost signed an agreement earlier before, but Luo’s announcement to step into e-commerce live streaming caused a stir that many companies requested cooperations with him. Luo negotiated with other e-commerce live-streaming platforms and Douyin started another round of talk with Luo as well. At last, Douyin agreed to offer more cooperation resources so that the deal was made,” according to the people close to the deal.
Douyin attracted hundreds of millions of users. Its 2019 Annual Data Report released on January 6, 2020 said that its daily active users exceeded 400 million.
The Chinese leading shot-video platform stepped up efforts to support e-commerce live-streaming since 2018 to generate revenues.