Short-from video platform Triller has announced plans to go public via a reverse merger with video software company SeaChange International (NASDAQ: SEAC). A reverse merger involves a private company buying a publicly listed company in order to take over the listing. The deal will value the new entity at $5 billion.
Triller is a direct rival to TikTok in the short-form video space. It offers users the ability to create and share videos set to music. The company launched in 2015 and currently boasts over 300 million users worldwide. The firm has attracted a host of celebrity users, including attracting some large TikTok creators such as Charli D'Amelio.
The company has also expanded into live events, streaming, and mobile gaming in an attempt to diversify its offerings. It notably owns Triller Fight Club, a live-event platform that has held numerous live, pay-per-view boxing events.
The deal is expected to be completed in the first quarter of 2022. The combined company will assume the name TrillerVerz Corp and will trade on the Nasdaq exchange under the ticker symbol ILLR.
Triller offers a seemingly interesting opportunity to invest in the short-form video space. The area is very competitive, however, with TikTok already dominating ahead of Instagram's Reels and YouTube's Shorts. As such, it's unlikely Triller ascends to the top of the industry.
The company seems to have realized this already as it has looked to expand into more live media. It has also stopped reporting daily or monthly active users for its video app in a clear move to transition into more of a traditional broadcast media company as opposed to solely a social media platform.
While certainly being an interesting company, potential shareholders would be wise to wait and see just where the company ends up finding itself within the industry. Both the social media and digital broadcasting spaces are full of competitors and Triller will have to offer something very different to its rivals in order to make a dent into the overall market share. Until we see proof that the company is actually able to do this, it might be best to steer clear.
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