Multiscreen video tech company SeaChange International said it is monetizing its investment in Layer3 TV, the MVPD recently acquired by T-Mobile, to the tune of about $6.7 million.
SeaChange, an investor in Denver-based Layer3 TV and announced as one of the tech partners for Layer3 TV’s in-home platform, said it has received an initial payment of about $4.6 million, with another payment of $2.1 million being held in escrow.
SeaChange announced the return on its investment almost a week after T-Mobile closed its acquisition of Layer3 TV. With Layer3 TV’s technology and talent in hand, T-Mobile is now setting to work on a “disruptive” OTT TV service that’s expected to debut later this year.
“We are very pleased that we have realized a significant return on our investment in Layer3 TV. The proceeds from this investment will further strengthen our cash position and balance sheet and provide additional support for our efforts to continue to improve SeaChange’s financial performance,” Ed Terino, SeaChange CEO, said in a statement.
Founded in 2013, Layer3 TV raised about $100 million prior to being acquired. Other Layer3 TV investors include Altice USA (inherited from its acquisition of Suddenlink Communications), Paulson Co., Evolution Media Partners and North Bridge Venture Partners.
T-Mobile has not yet disclosed what it paid for Layer3 TV.