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Singapore SPAC takes over Taiwanese Streaming Service in Historic Deal

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Waqas Arain
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Singapore SPAC takes over Taiwanese Streaming Service in Historic Deal

In a significant move, Vertex Technology Acquisition Corp., a special purpose acquisition company (SPAC) based in Singapore, is set to acquire 17Live Inc., a Taiwanese streaming and online-dating service, for a whopping S$925.1 million ($692 million). This deal marks 17Live Inc.'s maiden entry into the Singapore market as it becomes the first to combine with a locally traded blank cheque stock.

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The Historical Deal

Back in 2018, 17Live made headlines when it became the first company whose shares, after the listing bell rang, never traded on the New York Stock Exchange. Fast forward five years, the company, now known as 17Live Inc., is once again making history. This time, it is marking its entry into another market, Singapore, through a unique combination with a locally traded blank cheque stock, Vertex Technology Acquisition Corp.

Implications and Aspirations

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Shareholders of Vertex Technology Acquisition Corp. will vote on the acquisition of the live streaming app 17Live. The primary objective behind this strategic move is to identify a high-growth company with profound expertise in consumer Internet and technologies. As the leading live streaming platform in Japan and Taiwan, 17Live is poised to introduce the culture of live streaming to Singapore and the rest of South East Asia.

Risks and Valuations

However, the deal is not without its risks. There has been a noticeable decrease in revenue since 2021, and the high valuations also pose a significant concern. Despite these challenges, the deal is expected to conclude early next month.

This acquisition comes at a time when the charm of SPACs, often considered a cost-effective alternative to traditional private equity, has considerably faded in Asia and across the globe. Despite this transaction, the overall sentiment indicates that there will not be a resurgence in the popularity of SPACs.

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