Douyin's Power Move: TikTok Rival Inks Deal with Tencent to Boost Video Exposure

ByteDance Ltd owned TikTok counterpart Douyin and Tencent Holding Ltd TCEHY, agreed to explore the joint promotion of short and long videos keeping their bitter relations marked by lawsuits and public brawls at bay.
Users of platforms in the Douyin Group, including Douyin, Xigua Video, and Toutiao, can create short videos using the content in long videos on Tencent platforms, Reuters reports.
Tencent was at loggerheads with Douyin users for creating short videos using copyrighted material in long videos without obtaining approval.
"The latest development not only helps to settle the ongoing IP disputes but also helps to lay a framework for future collaborations between the two video platforms," MorningStar analyst Ivan Su said.
Chinese regulators called out the domestic tech giants for creating "walled gardens" that prevent rivals' links and services from being shared on their platforms.
Tencent saw advertising in its nascent short video platform becoming a potential revenue driver.
The new focus puts it in direct competition with China's leading short video players Douyin and Kuaishou Technology KUASF.
Price Action: TCEHY shares closed higher by 1.75% at $49.29 on Friday.