Whats sad is this company Viggle (that is buying GetGlue) is now public and being valued at over $130M...and they basically have no revs......granted I love the space and I think this is a really cool combination and is now a shazam like micro cap that is public...I think they have a good chance, but I would much rather be in Digimarc risk/reward wise....and if these guys (Viggle/Getglue) aren't a licensee then IV needs to get on it...
here is article from techcrunch...
Viggle’s Deal To Buy GetGlue Hinges On $60M Of Financing ‘From 2 Strategic Investors’, Expected To Close In Next 30 Days
A little detail in the 8-K form filed today by TV loyalty service Viggle, announcing its acquisition of social TV service GetGlue for $25 million in cash plus 48.3 million shares (embedded below), notes that the deal hinges on Viggle successfully completing a “convertible debt financing equal to or greater than $60 million.” TechCrunch has learned some more details around this, and it turns out that Viggle is in the process of picking up two large, strategic investors as part of that $60 million investment. Our source says that neither is a media company but could be a large consumer electronics company or a big internet brand.
Here is the relevent part from the 8-K: “Consummation of the Merger is subject to various conditions, including, among others, (i) the absence of any law or order prohibiting the consummation of the Merger, (ii) all consents, approvals, permits and authorizations having been obtained, and (iii) Viggle receiving gross proceeds from a convertible debt financing equal to or greater than $60 million. Viggle has received indications of interest and commitments from various strategic investors with respect to its convertible debt financing. In addition, Viggle’s and AdaptiveBlue’s respective obligations to consummate the Merger are subject to certain other conditions, including, among others, (i) subject to the standards set forth in the Merger Agreement, the accuracy of the representations and warranties of the other party, (ii) compliance of the other party with its covenants in all material respects, (iii) no event, change, effect or circumstance occurring that would constitute a material adverse effect on the other party.”
Viggle is now a public company, and in its time, the company has raised $67 million, with the chairman/CEO Robert Sillerman funding half of that himself, and Adage Capital and Baron Funds among other big shareholders.
This $60 million, however, would be the first time that the company picked up strategic investors. Who they are is still unknown, but we’ve seen a number of consumer electronics companies, such as Samsung, making investments in and putting big bets on connected TV, and the services running on connected TV, in order to sweeten the device deal, and also to do better battle against the likes of Apple.
Similarly, companies like Google have also been upping their game in TV, and its newest division, Motorola, has also had an extensive history making strategic investments into businesses that closely align with its own products. Connected TV is one of those.
Viggle’s 8-K form also details the break fee if the acquisition of GetGlue does not go ahead: it’s on the small side, $500,000.
Leading up to this acquisition, our source noted that there wasn’t any kind of bidding war on GetGlue, which has picked up 3 million users to date, but it was still something that was probably inevitable as the industry continues to mature and look for critical mass in interactive and second-screen TV services.
“Both parties see benefits of this deal,” our source said. “And where else were they going to go? Together, they have roughly 80-85% of the second screen TV base. The market is not big enough for them to try different tacks yet. Coming together brings the concept to the forefront, to advertisers and media partners, and jumpstarts the industry. It makes a lot of sense.”
The $60 million financing, we understand, is due to close in the next 30 days.
This one also shows the other huge companies in this space...
Acquisition, Second Screen...lost remote website
What the Viggle-GetGlue acquisition means for the battle over the second screen
By Cory Bergman on November 19, 2012 2:29 PM
Another Monday and another big acquisition announcement in the social TV world. As we reported earlier today, Viggle scooped up GetGlue, combining to form a second screen powerhouse in an increasingly competitive space. GetGlue has the bigger audience, but Viggle has the deeper pockets, a publicly-traded company (VGGL) founded by former American Idol exec Robert Sillerman that acquired Loyalize and quickly ramped up an aggressive team.
“Both companies are leaders in the exploding Social TV industry and have very active user bases,” Viggle President and COO Greg Consiglio told us when we asked why they made the acquisition. “Combining the complimentary product and engineering platforms we believe that consumers are going to be the big winners with better second screen experiences.”
As of this writing, Viggle’s stock is up 57%.
GetGlue’s bread and butter has been the TV “check-in” and virtual rewards in the former of stickers (active users can get real stickers mailed to them.) Viggle also employs check-ins along with real-time trivia and voting, but users are rewarded with points redeemable for movie tickets, music and gift cards. Viggle has been outspoken about its belief that real rewards are a better payoff for encouraging viewers to engage with a second-screen app.
“Viggle absolutely believes in the value of real rewards and frankly we recognize that there is also value in virtual rewards and stickers,” Consiglio told Lost Remote today. “We will continue to be guided by giving consumers what they want. That could mean virtual and real rewards being a part of both brands going forward.”
Both approaches have worked in their own ways. Viggle has reported incredible engagement with its app, while GetGlue has even surpassed Twitter with social activity around scripted shows while ramping up its community features. However, Viggle’s loyalty angle may have more monetization potential, as Consiglio points out. “The combined business will benefit from the increased user base and Viggle’s proven ability to monetize the activity.”
With the addition of Zeebox in the U.S. market — and its partnership with Comcast — the race to scale has taken on new significance. Not to mention, Twitter is showing a concerted interest in growing its second screen features, and Yahoo-IntoNow-ABCNews is always a combination to watch. The Viggle-GetGlue acquisition certainly puts them in a strong position, especially when you consider the likelihood that Viggle’s reward system will roll out on GetGlue.
“The two teams will begin working on plans to take the best off each other’s products, features, technologies and partnerships and build great experiences for consumers,” Consiglio said, stopping short of answering whether both brands will remain standalone destinations. “Our commitment is to our users and future users building great consumer experiences. We think each platform does great things for consumers that the other does not currently. Bringing that all together into one company is very exciting.”