SeaChange swoops into social TV with $14MN Timeline acquisition
DetailsJoseph O'Halloran | 23 December 2014
In a bid to bring social media analytics to a multiscreen TV footprint, SeaChange International has entered into a binding agreement to acquire social visualisation firm TLL.
SeaCHTimelineThe company does business under the Timeline Labs brand offering software designed to enable broadcasters to analyse social media messages in real-time, find and transmit social trends and insights, and measure viewing audience engagement across television, mobile and PC. It then provides visualisations ready for air on television and over-the-top (OTT) services. Timeline's major investors include former executives of television networks ABC, CBS, FOX and NBC, Sinclair Broadcast Group, and Guggenheim Digital Media. Its customers include FOX Television Stations, Sinclair, Media General and Tribune broadcast television stations, as well as online providers like 120sports.com.
Under the terms of the deal with SeaChange that is expected to close on 2 February 2015, Timeline will receive $14 million in cash, $8 million in shares of SeaChange stock, and up to an additional $2.5 million in deferred performance-based consideration payable in shares of SeaChange stock. This payment will be based on financial targets for Timeline Labs over a two-year period. All Timeline Labs employees, including the CEO and senior leadership team, will join SeaChange as part of the transaction. In addition, SeaChange has agreed to name one person designated by Timeline Labs' equity holders to the SeaChange board of directors, effective as of closing of the transaction.
"Social media can be captured for the advantage of the television industry, bringing concrete, new value by truly reflecting and serving the current mindset of their specific audiences," said SeaChange CEO Jay Samit commenting on the deal. "While the broadcast segment represents an accretive growth opportunity for SeaChange, the Timeline Labs platform will allow us to extend the social news paradigm to multiscreen television service providers, so they can easily launch ready-made and differentiated live or on-demand content packages tailored to the interests of their subscribers."
SeaChange and Timeline Labs has already worked together, collaborating to enable the NewCoin TV audience measurement venture with FOX Television Stations, Tribune Media and Univision.