Viggle Receives Proposal from Robert F.X. Sillerman to Acquire 25% Interest in the Company’s Wetpaint Business
March 20 2015 - 9:00AM
Business Wire
Viggle (Nasdaq: VGGL) has confirmed that it has received a
proposal from Robert F.X. Sillerman, its founder, executive
chairman and chief executive officer, for the acquisition of a 25%
interest in the company’s Wetpaint business for an aggregate
consideration of $10 million in cash.
Viggle Inc. is a mobile and web-based entertainment marketing
platform for media companies, brands and consumers. Wetpaint.com, a
property of Viggle, is an entertainment web destination that
targets the 18-to-34 female demographic. Wetpaint currently has a
combined social reach of approximately ten million total fans and
approximately 16 million monthly unique visitors and 71 million
monthly page views.
According to Mr. Sillerman’s proposal, he has offered to pay
Viggle $10 million in cash consideration for a 25% interest in the
Wetpaint business. His proposal further provides for him to receive
an option to acquire within 24 months the remaining 75% of the
Wetpaint business for $40 million, payable by a minimum of $20
million in cash and the balance through the issuance of a 5 year
note bearing interest at 6% per annum.
Mr. Sillerman’s proposal is subject to receipt of all necessary
approvals of the Viggle Board and any Special Committee formed for
the purpose of evaluating the proposal, and the execution of a
mutually agreeable stock purchase agreement. The proposal also
provides that any transaction would be subject to customary closing
conditions.
Viggle’s Board of Directors expects to form a Special Committee
of independent directors to evaluate the proposal from Mr.
Sillerman.
About Viggle Inc.
Viggle is an entertainment marketing and rewards platform whose
app rewards its members for watching TV shows and discovering new
music. The Viggle Platform had an average monthly total reach of 26
million for the three months ended December 2014, including over
7.9 million Viggle registered users. Since its launch, Viggle
members have redeemed over $22 million in rewards for watching
their favorite TV programs and listening to music. Members can use
Viggle’s store, accessible through the Viggle app or on Viggle.com,
to redeem their Viggle Points for TV show, movie, and music
downloads. In addition, Viggle operates Wetpaint, which offers
entertainment and celebrity news online; NextGuide, maker of
technology that helps consumers search for, find, and set reminders
for TV shows and movies; and Choose Digital, a digital marketplace
platform that allows companies to incorporate digital content into
existing rewards and loyalty programs in support of marketing and
sales initiatives. For more information, visit www.viggle.com or
follow us on Twitter @Viggle.
Forward Looking Statement
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated. All
information provided in this press release is as of the date of
this release. Except as required by law, Viggle Inc. undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Editor’s Note: Wetpaint’s combined social reach means the
cumulative number of times fans have liked Wetpaint pages on
Facebook and followed Wetpaint pages on Twitter.
Investors:IRTH CommunicationsRobert Haag,
866-976-4784VGGL@irthcommunications.comorInvestor Relations:Viggle
Inc.John C. Small, 646-738-3220CFOjohn@viggle.comorMedia:Dian
Griesel InternationalLaura Radocaj,
212-825-3210lradocaj@dgicomm.com