Tag: merger

12
Oct
2020
Posted in technology

TikTok rival Triller exploring IPO through SPAC merger: Report

  • Video app Triller is exploring the possibility of an IPO, sources told Reuters.
  • The company is reportedly in talks to set up a public listing via a merger with a special purpose acquisition company (SPAC).
  • It is simultaneously pursuing a private funding round, and sources told Reuters it had raised $100 million at a valuation of $1.25 billion so far.
  • The sources said no deal is yet firm, and that Triller is still deciding which path to take.
  • Visit Business Insider’s homepage for more stories.

Short-form video app Triller, which bills itself as a rival to the wildly successful TikTok, is reportedly exploring an IPO.

Reuters reported Sunday that Triller was in talks with investment bank Farvahar Partners about a potential merger and IPO.

Sources told Reuters the merger, if successful, would be with a special purpose acquisition company (SPAC). 

SPACs are essentially shell companies that go public to raise capital in order to acquire a company, allowing their target to easily obtain a public listing.

Triller was simultaneously in talks to raise a private fundraising round, sources told Reuters, adding that it had raised $100 million at a valuation of $1.25 billion so far.

Reuters’ sources said Triller was deciding whether to carry on with the private raise or forge a deal with the SPAC. They added that no deal was certain yet.

Triller was not immediately available to comment on the report when contacted by Business Insider.

Triller has positioned itself as an emerging competitor to TikTok, which it is suing for alleged patent infringement.

Last month it said it had 100 million monthly active users, and CEO Mike Lu told TechCrunch Disrupt on September 15 that the company’s growth was “definitely on a rocket ship.” 

TikTok remains much larger than Triller, with 689 million monthly active users

07
Oct
2020
Posted in technology

Momentus is going public in SPAC merger: What to know

Momentus, the space infrastructure startup that offers so-called last-mile delivery services through partnerships with companies like SpaceX, is heading for the public markets.

The three-year-old firm said this morning it will merge with Stable Road Capital, a special purpose acquisition company, or SPAC. The merged entity will have an approximate valuation of $1.2 billion and will trade on the Nasdaq under the ticker symbol MNTS. The deal is expected to be finalized sometime next year.

Momentus was recently named one of Fast Company‘s Most Innovative Companies for its water-based propulsion system, which helps move satellites and cargo in space.

Momentus is one of a growing number of startups to announce it will go public by merging with a SPAC, also known as a blank-check company. Just yesterday, health insurer Clover Health announced it would go public by merging with a SPAC led by Social Capital’s Chamath Palihapitiya. Personal care brand Hims said last week it would choose a similar route.

According to MarketWatch, 2020 has been a record year for SPAC mergers, with more than 80 announced as of September. While they’ve become a popular pared-down alternative to the traditional IPO process, a recent report from Renaissance Capital found they often result in lower returns, and critics claim they could allow companies to skirt regulatory safeguards. Jay Clayton, chairman of the Securities and Exchange Commission, recently vowed more scrutiny of the process.

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