June 14 (Reuters) – Short-video app Triller on Tuesday ended its $5 billion merger with video advertising software provider SeaChange International Inc (SEAC.O), announcing it would seek an IPO instead.
SeaChange shares plunged 40% to 41 cents.
Triller said it was responding to higher-than-expected demand for its convertible bond offering and because its shareholders prefer the company to go public via a direct listing.
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“The current market requires clear and disciplined thinking. A Triller IPO is a cleaner transaction that allows us greater control over our destiny,” said Chief Executive Officer Mahi de Silva.
Triller is expected to list under the new ticker symbol “ILLR” through September.
The companies said they mutually agreed to end the transaction as it was “no longer feasible to complete the merger before its June 30 termination date,” adding that they would not seek an extension and that the termination be effective immediately.
In December, the two companies signed a deal to take Triller public through a reverse merger with SeaChange. Continue reading
M&A activity, particularly SPAC deals, has been among the hottest investment trends during the pandemic. However, they are losing investor attention due to regulatory scrutiny and market volatility.
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Reporting by Nivedita Balu in Bengaluru; Editing by Amy Caren Daniel
Our standards: The Thomson Reuters Trust Principles.
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