(Yicai Global) March 28 -- The company behind news aggregator Toutiao is reported to have replaced Alibaba Group Holding Ltd. and Jack Ma's venture capital firm Yunfeng Capital in a deal to take control of AcFun as the animation streaming platform sees its popularity wane and financial distress mount.

Toutiao owner Beijing ByteDance Technology Co. will step up in place of online retail giant Alibaba and Yunfeng Capital, financial magazine Caijing reported, citing a source close to AcFun. ByteDance has contacted AcFun several times as of late and the withdrawal of Ma's firms offers a window for it to move in, the source added.

Several recent acquisitions appear to back the source's claims. One of ByteDance's subsidiaries has begun purchasing licenses for animated series and the company itself has bought shares in online video platform Kuaikanmanhua and production firm Beijing Shengying Animation Technology Co. It has also acquired an online community focused on manga and comics, Banciyuan.

Alibaba and Yunfeng Capital devised plans to buy shares in AcFun in December, adding to the former's existing indirect stake via its online video platform operator Youku Tudou Inc. But talks turned sour in January, the report added, saying Alibaba demanded a larger stake for its investment and questioned the company's value, turning other shareholders against the idea of Hangzhou-based Alibaba taking over.

AcFun shut down for 11 days in February, apparently due to financial difficulties. Media reports suggested the company defaulted on salary payments for 200 employees in November and December when its daily active users were down at 1.6 million, compared with an average of 8 million throughout January last year.