SeaChange Stock Gains 9.5% on Merger Announcement

Digital advertising company SeaChange International, Inc. (NASDAQ: SEAC) has announced plans to merge with Triller Hold Co LLC. The combined company is expected to be valued at about $5 billion.

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Shares of SeaChange rallied 9.5% on Wednesday and were up another 4.6% at the time of writing on Thursday.

Agreed Terms

Upon completion, SeaChange will change its name to TrillerVerz Corp., and the Nasdaq listed ticker symbol will change from SEAC to ILLR.

The transaction is expected to close in the first quarter of 2022, subject to the necessary closing requirements, including specified working capital requirements and regulatory and stockholder approvals.

The combined company will be headed by TrillerVerz CEO Mahi de Silva. Silva will also become Chairman of the Board. Peter Aquino, President and CEO of SeaChange, will be a part of the TrillerVerz team as well.

Benefits

With this deal, TrillerVerz seeks to strengthen its AI-powered social media platform for content, creators, & commerce. Also, it expects to create a leading voice on the Web3.0 movement and embrace the power of decentralized systems to enable greater participation in the multi-hundred billion dollar creator economy.

Notably, TrillerVerz aims to expand its revenue sources by bolstering its global footprint and investing in new growth opportunities across the creator economy and emerging technologies.

CEO Comments

CEO Mahi de Silva, said, “We believe that combining with SeaChange accelerates our advertising and marketing capabilities by extending our reach to cable, satellite, and OTT media.”

Peter Aquino stated, “The business combination with TrillerVerz represents a tremendous opportunity to invest in the future of creativity. We believe that TrillerVerz’s unmatched social media reach, Gen Z engagement, and the opportunity to meaningfully expand its global multi-platform presence across content, commerce, creators, and being at the forefront of e-commerce, adtech, and NFTs, including the metaverse, is a compelling investment with the potential to create significant value.”

Q3 Performance

SEAC’s earnings for the third quarter of Fiscal 2022 were released last week. Total revenue of $7.2 million increased 44% from the prior year’s quarter. The upside was primarily due to significant growth in product revenues.

Also, an adjusted loss from operations came in at $0.03 per share compared to a loss of $0.10 per share.

Positive Investor Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on SeaChange, with 36.3% of investors increasing their exposure to SEAC stock over the past 30 days.