TikTok rival Triller has completed its merger with Hong Kong financial firm AGBA, marking the culmination of years of efforts to become a public company.
According to a press release issued this afternoon, AGBA has officially changed its name to Triller Group, Inc. The combined company’s common stock and warrants are expected to begin trading under the ticker symbols “ILLR” and “ILLRW” respectively Nasdaq Capital Market Wednesday (October 16, 2024).
“This merger is great news for both users of our apps and content creators,” said Bob Diamond, chairman of the combined company and founder and CEO of Atlas Merchant Capital LLC.
“Whether they are fans of BKFC, watch sports and entertainment events from around the world on TrillerTV, or are using our brand and creator tools to find audiences, Triller is now an innovative and exciting partner for them. “
The company said it will make a statement later this month on its future leadership, strategy and goals. Former Citigroup senior executive Mark Kaback Appointed as the new Treasurer.
AGBA said in a statement released on Monday (October 14) that it had received approval for the merger from Nasdaq last Friday.
When the two companies announced their merger in April, they said they would create a $4 billion The company will venture into social video, content generation, wealth management and fintech.
“This merger is great news for both users of our apps and content creators.”
Bob Diamond, Trier
Under the terms of the all-stock merger, existing Triller shareholders will ultimately own 80% of the new company, while AGBA shareholders will control the remaining 20%. However, based on recent statements from AGBA and Triller, that ratio has now shifted to 70% For Triller shareholders, and 30% is a shareholder of AGBA.
The companies’ shares will undergo a 4-for-1 reverse stock split, which AGBA and Triller said was Nasdaq’s requirement for the merger.
“The reverse stock split does not change the overall value of shareholders’ investments, and the value of investors’ shares remains unchanged at the time of the split,” the companies said in a statement on Friday.
As part of the transaction, AGBA, which is registered in the British Virgin Islands, will relocate to Delaware.
Under plans announced this spring, Triller co-founder Bobby Sarnevisht Will serve as CEO of Triller, a subsidiary of the new company, and will also Bob Diamond Will serve as Group Chairman and AGBA Chairman Wu Yonghui will serve as group chief executive. Sarnevesht will also serve as a director of the combined company.
The company launched in 2015 as a music video creation tool and has since evolved into a social video platform, positioning itself as an alternative to music video creation tools Tik Tok – has made several attempts to go public in recent years.
One of the projects is Triller and Haibian Internationalthe target is the initial valuation US$5 billion. However, the SPAC merger failed, and the company soon announced plans for a direct listing that it said would be “the largest creator IPO in history.”
Those plans fell through, and the company tried again for a direct listing in 2023. have 400,000 customer.
The expected value of the merger agreement to Triller is US$3.2 billionwell below the company’s original IPO target of $5 billion.
As part of the final agreement approved by AGBA shareholders in September, 50 million shares of the combined company will be placed in escrow and “will be used to resolve certain legal and financial obligations of Triller in the future.”
Triller has been dogged by lawsuits alleging non-payment and copyright infringement against the company over the past few years.
2022, sony music Suing the company for allegedly using music worth “millions of dollars” without authorization. The two settled their legal dispute in August 2023.
In 2023, Triller was sued again for unpaid music licensing fees, this time by universal music group.
The company also faces lawsuits from manufacturers Timbaland and Swizz Bates About the acquisition of their Song Battle Series Verzuz At the beginning of 2021, he was also sued by Germany fitura consulting firm that helps app development by improving user experience, September 2022.
In a filing with the Securities and Exchange Commission earlier this year, ahead of its planned initial public offering, Triller revealed it owed music rights holders $23.6 million in unpaid fees. The company has raised more than $420 million from investors, less than 1 million US dollars Cash and cash equivalents on hand.
The company is also notorious for allegedly inflating the number of users on its platform. In 2020, it claimed to have 100 million active users, but Business Insider, citing company employees, cast doubt on that claim. In 2023, analytics firm Apptopia refuted Triller’s claims that it had 550 million App downloads, estimated total 73.2 million. Triller reportedly threatened to sue Apptopia over the accusations.
AGBA stock trades at $1.16 As of Tuesday morning (October 15), the company’s market capitalization was $225.2 million.
The financial services company, which also holds healthcare and fintech businesses, has recently reported weak earnings, apparently hurt by China’s economic weakness.
AGBA’s revenue declines in first half of 2024, according to its most recent 10-Q filing with the SEC Annual increase of 55.8%arrive $12.58 millionThe company attributed the sharp drop in commissions to “Hong Kong’s economic recession and out-migration.”global music business
