Social media platform Triller revealed concerning financial challenges, reporting outstanding music licensing-related payment obligations of $23.6 million as of September 30, 2023.
The company, in a filing with the SEC, admitted that these obligations surpass its current cash balance, potentially impacting its ability to secure future financing.
Triller faces non-compliance issues with numerous contracts, including music licenses, and overdue payments to various parties for services. Legal hurdles also loom large, with lawsuits from Universal Music Publishing Group and Sony Music Entertainment seeking millions in unpaid fees.
Simultaneously, Triller touts its financial achievements, claiming over $420 million in capital raised and 327 million net consumer accounts. However, a recent effort to purge duplicate and bot accounts resulted in the removal of over 200 million accounts from its metrics. Triller emphasises transparency in reporting, acknowledging the prevalence of inflated user metrics in the industry.
The company’s acquisition of Verzuz, a music battle series, also raises concerns, with Triller acknowledging a debt of approximately $37.0 million to the owners, exceeding its meagre cash balance.
While Triller asserts that losing Verzuz’s intellectual property wouldn’t adversely impact its business, challenges in monetising the brand name pose uncertainties.
Triller generated revenues of $33.586 million in the nine months leading to September 2023 but reported a net loss of $131.2 million during the same period.
The disclosure raises questions about Triller’s financial stability and its ability to navigate legal challenges while sustaining growth in the competitive social media landscape.
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