Triller kills reverse merger with SeaChange to pursue direct listing

Trillerverz, the company behind short-form video app Triller, and video software company SeaChange International ended their $5 billion reverse merger on Tuesday.

Why it matters: It's yet another withdrawal of a media company's plans to go public amid market volatility, but interestingly, Trillerverz still wants to enter the public market.

By the numbers: SeaChange's stock dropped 40% following the news and dipped to an all-time low of $0.38 on Tuesday. The stock was trading at $0.52 around 10:30am ET on Wednesday.

Details: Trillerverz said Tuesday it will pursue a direct listing and plans to be listed on the Nasdaq by September under the ticker "ILLR," upon Nasdaq and SEC approval.

• "The current market demands clear and disciplined thinking," CEO Mahi de Silva said. "A Triller IPO is a cleaner transaction, allowing us greater control of our destiny."
• Trillerverz said it was "responding to higher than expected demand for its convertible debt offering and a clear preference to go public via a direct listing from its current and future shareholders."
• SeaChange's press release noted that it was "no longer possible to complete the merger prior to its termination date of June 30" and that the companies "decided not to seek an extension."

Of note: Trillerverz reported a $769.7 million net loss for 2021, per an SEC filing.

• B2B comprised about 98% of its total 2021 revenue. De Silva told Insider that the company expects its B2B business to be its biggest revenue driver going forward.