TikTok Owner Loses Musical.ly Co-Founder After Edtech Flop

One of the brains behind the app that morphed to become TikTok has left its Chinese parent ByteDance Ltd., after Beijing’s year-long regulatory crackdown scuppered an expansion into gaming and education.

Louis Yang, a co-founder of Musical.ly — the app acquired by ByteDance in 2017 and merged with TikTok — quit his job at the Beijing-based firm last week, according to a person familiar with the matter. Yang was last in charge of ByteDance’s foray into educational gadgets, which was frustrated by Beijing’s clampdown on online tutoring services and apps last summer, said the person, asking not to be identified discussing private information.