TikTok, watch out! A competitor to the video-based social network may be making its public debut soon according to an anonymous source involved in the potential transaction. Indeed, Triller, a short-video entertainment app, may be merging with SeaChange International (NASDAQ:SEAC). The merger could be announced as soon as this week, which would create even more excitement around SEAC stock.
So, what do investors need to know about this potential merger?
According to the source, the transaction would most likely value Triller above its most recent private valuation of $1.25 billion. Additionally, private backers include Carnegie Technologies, Lowercase Capital and Pegasus Tech Ventures.
SeaChange operates as a video and advertisement delivery service. The company also provides video streaming and linear television services, and it is headquartered in Boston, Massachusetts. With a current market capitalization of $65 million, a merger with Triller would definitely have major implications for SeaChange. Shares of SEAC stock are up more than 90% the past week due to rumors of the merger.
Can Triller Overtake TikTok With SEAC Stock Merger?
While this is exciting news for fans of Triller, the video entertainment app is still light years away from catching up to TikTok. TikTok currently ranks as no. 2 on App Annie’s list of top free downloaded iPhone apps in the U.S. Triller doesn’t even fall in the top 50 for that category. However, Triller is actively working to attract users and downloads by partnering with celebrities. Popular names like Justin Bieber, Chance the Rapper and Cardi B are all users of the app. Last September, Triller even brought on former president Donald Trump and his son to commentate on a Triller Fight Club pay-per-view boxing match.
Earlier this year, Triller announced that it has more than 300 million worldwide users on its app, well short of TikTok’s figure of 1 billion. The company also announced that projected revenue for 2021 would be north of $250 million. A big chunk of revenue likely comes from hosting advertisements and Triller Fight Club. Creators on the app can also monetize their videos based off of user engagement.
When asked to comment on the potential transaction, spokespersons for both SeaChange and Triller declined to comment. They also did not outright deny the rumors. Investors will want to keep a watchful eye on any further developments this week.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.