Financially troubled social media app and TikTok competitor Triller is merging with a Hong Kong monetary companies firm to create a $4 billion firm that may have its fingers in social video, content material era, wealth administration, and fintech.
The transfer may assist Triller overcome latest monetary difficulties and compete with TikTok at a time when the ByteDance-owned brief video app is beneath stress from lawmakers within the US, and mired in a licensing dispute with Common Music Group.
Triller, which started in 2015 as a music video creation software, and advanced right into a music-focused video platform that’s usually described as a TikTok competitor, introduced on Thursday (April 18) that it’s merging with AGBA, a NASDAQ-listed monetary companies firm that operates primarily in Hong Kong.
Beneath the phrases of the all-stock merger, Triller shareholders will personal 80% of the brand new AGBA Group Holding Ltd., whereas present AGBA shareholders will personal the remaining 20%.
In response to the announcement, the deal valuates Triller at USD $3.2 billion (significantly lower than earlier estimates of $5 billion) and AGBA at $800 million, giving the mixed firm a pro-forma worth of $4 billion.
AGBA says the merger has been permitted by each corporations’ boards, however is “topic to regulatory and stockholder approvals” and different closing situations.
“This groundbreaking merger combines AGBA’s monetary experience with Triller’s cutting-edge AI-driven content material creation and SaaS capabilities, aiming to remodel international digital ecosystems,” AGBA stated in an announcement issued Thursday (April 18).
“By strategically integrating AGBA’s monetary companies experience with Triller’s progressive suite of AI-driven digital content material and SaaS choices, this merger establishes new benchmarks within the convergence of expertise, finance, and media.”
AGBA describes itself as a “main Asia-based monetary companies firm” and says it has 400,000 particular person and company clients in Hong Kong. AGBA reported full-year income of USD $54.2 million for 2023, up 74% YoY.
Triller co-founder Bobby Sarnevesht will function CEO of Triller beneath the brand new firm, whereas Bob Diamond will function Group Chairman and AGBA Chairman Wing-Fai Ng can be Group CEO.
Triller was fashioned in 2015 as a music video creation platform, and, by a sequence of acquisitions, it developed a bunch of social media adjoining companies, together with advertising and marketing instruments Amplify.ai, an AI-driven software to attach manufacturers with clients on a number of social media platforms, and Julius, which facilitates on-line advertising and marketing campaigns.
The corporate’s core enterprise continues to be its music-driven social media platform. By way of its partnership with 7digital, Triller gained entry to the catalogs of Sony Music, Common Music Group, Warner Music Group and the Merlin Community for indie labels.
Nevertheless, Triller has developed a status for failure to pay for its use of music. In 2022, Sony Music sued the corporate for “tens of millions of {dollars}”-worth of unauthorized music use. The 2 settled the authorized dispute in August 2023, as Triller ready for an IPO that by no means occurred.
In 2023, it was sued once more over unpaid music licensing charges, this time by Common Music Group.
”We consider that is essentially the most environment friendly route for Triller to entry public capital markets and safe the liquidity wanted for speedy development.”
Bobby Sarnevesht, Triller
In an SEC submitting earlier this yr, prematurely of its deliberate IPO, Triller revealed that it owes music rightsholders $23.6 million in unpaid charges. The corporate, which had raised greater than $420 million from traders, had lower than $1 million in money and money equivalents readily available.
The corporate has additionally developed a status for allegedly exaggerating its platform’s person numbers. In 2020, it asserted it had 100 million energetic customers, however that was disputed by firm staff cited by Enterprise Insider. In 2023, analytics agency Apptopia disputed Triller’s declare that it had 550 million app downloads, and estimated a complete of 73.2 million. Triller reportedly threatened to sue Apptopia over that declare.
In an announcement issued on Thursday, Triller CEO Bobby Sarnevesht stated the merger is essentially the most environment friendly route for Triller to “entry public capital markets and safe the liquidity wanted for speedy development.”
He added: ”Triller’s Digital Media, Social Promoting, AI, Fight Sports activities, and SaaS companies have skilled large development, and this merger positions Triller to realize new milestones.”
“AGBA’s experience in capitalizing on monetary worth from complicated developments and speedy development will present the gas for Triller’s rocket ships.”
Wing-Fai Ng, AGBA Group Holding Ltd.
“With a wealthy historical past of setting data and making daring strikes, we consider Triller is now getting ready to an thrilling future,” stated Wing-Fai Ng, Group President of AGBA Group Holding.
“Its groundbreaking expertise, coupled with an aggressive and strategic enterprise mannequin, positions it not simply as a formidable competitor to tech giants however as a possible game-changer within the trade. AGBA’s experience in capitalizing on monetary worth from complicated developments and speedy development will present the gas for Triller’s rocket ships. Collectively, we now have loads to perform.”
Triller has at instances been seen as a possible different to TikTok, which has raised considerations amongst policymakers within the West over its possession by ByteDance, an organization with hyperlinks to China’s authorities. Many Western governments have banned TikTok from authorities units, over considerations that the app could also be sharing info with the federal government in Beijing, an allegation that TikTok has denied.
In 2020, the administration of President Donald Trump engaged in a failed try to ban TikTok within the US, and Trump himself joined Triller, in an effort to advertise as a TikTok different.
In 2022, Triller’s CEO on the time, Mahi de Silva, known as on “each American to delete TikTok at the moment and the US Authorities to take direct and overdue motion to ban TikTok.”
De Silva wrote: “I stand with a rising refrain of elected officers, regulators, intelligence officers, different international executives, and customers who acknowledge the enormity of the devastating impression of TikTok on our society”.
Nevertheless, with its new merger with an organization working in Hong Kong, it’s unclear whether or not Triller itself will be capable to keep away from related suspicions about its hyperlinks to China.
In a prospectus filed with the SEC in 2023, AGBA famous that whereas it’s listed on the US-based NASDAQ, and the holding firm is registered within the British Virgin Islands, its subsidiaries’ principal administrative center is Hong Kong, a territory over which China’s authorities has been exerting growing quantities of management.
“Whereas AGBA presently doesn’t have any operations in mainland China, there isn’t a assure that the latest statements or regulatory actions by the related organs of the PRC authorities… will proceed to not apply to AGBA,” the prospectus said.
The corporate warned of potential “materials antagonistic impacts” on its enterprise, ought to China take better regulatory management over monetary corporations working in Hong Kong.Music Enterprise Worldwide
