AGBA Group Holding Limited (NASDAQ: AGBA) announced a merger with Triller, a move that has seen the company’s stock price surge from $0.40 to $1.25.
The deal, which is expected to close in May, will see AGBA domesticate to the United States, ensuring that Triller remains an American app and company.
Triller, an AI-fueled short form video platform, is seen as a potential alternative to TikTok.
In 2020, Triller gained prominence in India after TikTok was banned in the country. When the U.S. President Donald Trump signed an executive order threatening to ban TikTok in the country, Triller immediately became the most downloaded app in the app store.
The merger has been valued at approximately $4 billion, with Triller set to be issued 407 million shares of AGBA.
However, there are some concerns about the valuation, with some analysts suggesting that Triller may not be worth as much as claimed.
Triller has faced some challenges in recent years, including missed payments to artists and allegations of inflating its user base.
The company’s revenue has also declined in recent years, with full-year revenue for 2022 being $53.5 million.
Despite these challenges, there is optimism that the merger with AGBA will help Triller to regain its momentum.
The potential ban of TikTok in the United States could also provide a significant boost to Triller’s user base.
Overall, the merger between AGBA and Triller is a risky but potentially lucrative move.
The combined company has the potential to become a major player in the social media landscape, but it will need to overcome a number of challenges in order to achieve success.
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