Timbaland and Swizz Beatz reach a settlement with Triller in a $28 million ‘Verzuz’ deal suit
The producers accused Ryan Kavanaugh’s Triller of defaulting on their original deal.
According to the two parties in an agreement announcement, the settlement will raise the producers’ ownership stake in parent firm Triller Network, which was part of the original arrangement. Additional terms were not disclosed.
Triller was sued for breach of contract by Timbaland and Swizz Beatz in August, saying that the aspiring TikTok competitor failed to make a $28 million payment for the acquisition of Verzuz. In March 2021, the rap-battle show was purchased for an eight-figure price, making the duo shareholders in the company.
Litigation has dogged the transaction. According to the complaint, after Triller failed to pay the music producers in January, the firm agreed in a settlement to pay them $9 million apiece by March 2020 and $500,000 per month for the next ten months.
A new payment plan was agreed upon, the suit reportedly says, and Triller made the first payment under the new pact in February. Triller was then required to pay another $18 million by March 17, plus $1 million more per month for another 10 months. The plaintiffs allege those payments have not been made.
Swizz Beatz and Timbaland earlier this year set a deal with Amazon Studios for a feature-length documentary Gifted & Black, inspired by Verzuz.
According to Billboard, Triller has been vying to go public. In June, it called off a $5B proposed merger with video-tech company SeaChange International, but later submitted documents to the SEC for an IPO.
Triller was accused of failing to make the payments in the case.
According to the firm, the producers have already received more than $50 million in cash and stock and have not satisfied the standards for the contested payments.
Triller Executive Chairman Bobby Sarnevesht said in a statement, “Creators started this and will continue to build it.” “As we march together toward the public markets, this is a triumphant moment in the Triller and Verzuz relationship. Watch this space.”