(Reuters) – Short-video app Triller said on Tuesday it had ended its merger agreement with SeaChange International Inc, a provider of video advertising and streaming technology, sending shares of the listed company down 30% in premarket trading.
The companies said they had mutually agreed to terminate the deal as it was “no longer possible to complete the merger prior to its termination date of June 30”, adding they would not to seek an extension and that the termination was effective immediately.
In December, the two companies had inked a deal to take Triller public through a reverse merger with SeaChange in a deal that would have valued the combined entity at around $5 billion.
A reverse merger is a deal in which a private company goes public by buying a listed company.
M&A activity, especially SPAC deals, were among the hottest investment trends during the pandemic. However, they are losing investor attention due to regulatory scrutiny and market volatility.
(Reporting by Nivedita Balu in Bengaluru; Editing by Amy Caren Daniel)
