Consolidation is often a sign that a market segment is flourishing and, more importantly, that fewer players can make the space more viable. That business model is apparently at work in the fledgling social TV space, where Viggle has agreed to acquire GetGlue for about $78.6 million in a cash-and-stock deal in which Viggle will pay $25 million in cash and, based on a $1.11 per share stock price, will contribute about $53.6 million worth of stock.
Viggle announced it will operate both brands. GetGlue founder-CEO Alex Iskold will join Viggle as a senior executive and board member and all 34 GetGlue employees will become Viggle employees.
"We will also be vastly increasing the Viggle user base and quadrupling our network partnerships," Viggle Chief Executive Robert Sillerman said in a statement carried by the New York Business Journal. "Viggle and GetGlue users can look forward to using the apps they have come to love as we add new and appealing features made possible by the combined resources of this clear industry leader."
For those unfamiliar with the space, Viggle, which was founded in 2010 and launched in January of this year, gives users points to check in when watching TV shows that are identified by sound on tablets and smartphones. The points can be redeemed at retailers such as Best Buy, Amazon and iTunes, among others. Viggle claims about 1.2 million registered users.
GetGlue is a bit more social, offering users a personalized TV guide to find videos, images and links from their favorite shows. It claims about 3.2 million registered users.
"With this deal we are combining very experienced and creative product, engineering and management teams that will continue to build great user experiences and provide industry leading platforms for consumers, networks and advertisers," Sillerman added.
For more:
- the New York Business Journal had this story
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