GetGlue and Viggle Call Off Merger
The companies provided few details, but said they remain on good terms.
The companies provided few details, but said they remain on good terms.
Like a Hollywood romance, the merger between social TV application GetGlue and television loyalty service Viggle is officially off after just two months.
In a blog post dated January 13, GetGlue CEO Alex Iskold writes, “Today we’ve decided that GetGlue will not be merging with Viggle. The two companies remain friendly and think highly of each other.”
Iskold also says GetGlue is moving forward as an independent company.
“We have a strong product and partnership pipeline for 2013, and look forward to delighting our users and expanding the relationships with major networks, studios and brands,” Iskold writes.
Iskold declined further comment.
According to the blog post, GetGlue has 3.5 million users and partnerships with brands like Coca-Cola, Pepsi, Intel, Gap and Mercedes.
A Viggle rep cites a press release that says the merger agreement “has been terminated.”
“During the time we started talking to GetGlue about an acquisition and since the merger agreement was signed in November, we have seen impressive growth in our business,” says Viggle CEO Robert F.X. Sillerman in a prepared statement. “We are pleased with this positive momentum.”
Viggle announced it was acquiring GetGlue for $25 million in cash and 48.3 million shares of stock in November.
At the time, industry reaction was mixed, given Viggle is younger, has a smaller user base and is in questionable financial health, per its 2012 regulatory filings. A 10-K filing for the year ending June 30, 2012, for example, reported $1.7 million in revenue for a net loss of $96.5 million.
Founded in 2007, GetGlue enables users to check in and socialize while watching TV, discover what to watch and find content from their favorite shows. As of November, GetGlue was backed by $24 million from investors including Rho Ventures, TimeWarner, RRE Ventures and Union Square Ventures.
Viggle members, on the other hand, earn points for their loyalty to and engagement with content around TV shows. Points can be redeemed for rewards from retailers like Best Buy, Amazon, Fandango, Hulu Plus and iTunes. Viggle was founded in 2012 and has 1.6 million registered users.
On Monday, Viggle issued a press release touting its single busiest day ever with nearly 870,000 verified audio check-ins.
Leave a Reply
You must be logged in to post a comment.