SeaChange International, a video tech specialist that's been going through a years-long reorganization and restructuring, now plans to combine with Triller Hold Co., a developer of short-video apps and content for social media platforms.

SeaChange and Triller, a Tiktok rival, announced the deal Wednesday morning. Valuing the proposed combined entity at $5 billion, the pact calls for the two companies to go through a "reverse merger" that will enable privately listed Triller to go public by taking over publicly traded SeaChange. The combined company, to be called TrillerVerz Corp., will trade on the Nasdaq if the deal goes through as planned in Q1 2022.

As part of the deal, investors have committed to pump $250 million into the combined entity, as reported by Reuters. Plans call for Mahi de Silva, the CEO of Triller's parent company, to head the new entity.

Triller runs an AI-powered social media platform for content, creators and commerce. Among other things, the company owns Triller Fight Club, a live-event platform in partnership with rapper Snoop Dogg, and operates TrillerTV, a long-form content streaming platform with more than 65 original shows.

As Reuters also reported, Triller has been looking for a way to go public and raise money for a while. Previously, the company considered plans to list through a merger with a blank-check firm last year and explored the direct listing method of listing shares. But now it has shelved both those options and decided to cast its lot with SeaChange.

"Our strategy is to continue to build the world's largest stage for creators to distribute and monetize viral and engaging content with experiences that elevate culture," de Silva said in a written statement. "We believe that combining with SeaChange accelerates our advertising and marketing capabilities by extending our reach to cable, satellite and OTT media."

For its part, SeaChange, a veteran video tech player that has gone through long periods of turmoil and hard times, has been seeking to grow after finally stabilizing its finances and operations under new president and CEO Peter Aquino. Under his leadership, SeaChange has accelerated the shift of its business from legacy hardware to video tech software.

Most recently, for example, SeaChange launched StreamVid, a cloud-based, software-as-a-service offering that supports various streaming devices, including standalone streaming players and integrated smart TVs. SeaChange's early wins for StreamVid have included Popcornflix, a free, ad-supported streaming service, and Screen iL, a premium streaming service featuring Israeli TV channels and films.

The merger comes as SeaChange's overall financials continue to show some signs of improvement. The company posted Q3 2022 revenues of $7.2 million, up from $6.5 million in the second quarter of fiscal 2022. SeaChange also announced recently that its technology now connects more than 100 million subscribers worldwide and manages about 35,000 linear channels. Key customers include Verizon, Dish Network, Videotron, Cogeco, AT&T, Cox Communications and Liberty Global.

"The business combination with TrillerVerz represents a tremendous opportunity to invest in the future of creativity," Aquino said in a written statement. "We believe that TrillerVerz's unmatched social media reach, Gen Z engagement, and the opportunity to meaningfully expand its global multi-platform presence across content, commerce, creators, and being at the forefront of e-commerce, adtech, and NFTs, including the metaverse, is a compelling investment with the potential to create significant value." He plans to stay on with the combined company in an undisclosed post.

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— Alan Breznick, Cable/Video Practice Leader, Light Reading