AGBA Group (NASDAQ: AGBA) stock surged over 15% in the pre-market trading Monday after the company announced it entered into a definitive merger agreement with Triller, a prominent social media platform.
AGBA Group (AGBA), an Asian financial services firm, has announced the acquisition of social video platform Triller in an all-stock transaction deal that sees the combined entities valued at a staggering $4 billion, as per the latest SEC filings revealed this Thursday, April 18.
Triller is a leading social media platform and is often compared to TikTok. It boasts a diverse portfolio of assets, including its eponymous app, generative AI platform Amplify.ai, pay-per-view service FITE, bare-knuckle fighting company Bare Knuckle Fighting, influencer marketing software Julius, and experiential events planner Thuzio.
Merger Terms Overview
The merger agreement values Triller at a lower-than-expected $3.2 billion and AGBA at $800 million, resulting in a combined pro forma value of $4 billion for the merged entity.
Under the terms of the deal, Triller shareholders will hold an 80% stake in the newly formed AGBA Group Holding Ltd., while current AGBA shareholders will retain the remaining 20%.
The merger between the two companies has received the green light from their respective boards, according to AGBA, with the caveat that it still requires the nod from regulators and shareholders and must meet certain other conditions.
Bobby Sarnevesht, co-founder of Triller, will take the helm as CEO of Triller in the new company. Bob Diamond will serve as Group Chairman, and AGBA Chairman Wing-Fai Ng will step into the role of Group CEO.
Management Commentary
The CEO of Triller, Bobby Sarnevesht, expressed his optimism about the merger with AGBA Group (NASDAQ: AGBA). He believes this strategic move will boost innovation and significantly broaden their market footprint, creating unmatched value for their users and stakeholders worldwide.
He stated,
“We believe this is the most efficient route for Triller to access public capital markets and secure the liquidity needed for rapid growth.”
According to him, various businesses of Triller, including Digital Media, Social Selling, AI, Combat Sports, and SaaS, have seen remarkable growth. He added that this merger puts Triller in a convincing position to reach new heights.
Mr. Wing-Fai Ng, Group President of AGBA Group Holding Limited, also expressed enthusiasm about the prospects of Triller following the acquisition, stating:
“With a rich history of setting records and making bold moves, we believe Triller is now on the brink of an exciting future. Its groundbreaking technology, coupled with an aggressive and strategic business model, positions it not just as a formidable competitor to tech giants but as a potential game-changer in the industry. AGBA’s expertise in capitalizing on financial value from complex developments and rapid growth will provide the fuel for Triller’s rocket ships. Together, we have a lot to accomplish.”
AGBA Group (NASDAQ: AGBA) Stock Reaction
At the time of publication, AGBA stock has traded at $1.45, marking a 15.80% increase compared to the previous trading session. Traders have exchanged 128,085,343 (128.08 million) shares, surpassing the average daily trading volume of 2.17 million.
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