Function(X) Inc. Completes Acquisition of Rant Inc., Accelerates Growth in Social Publishing
July 13 2016 - 8:00AM
Business Wire
Renewed Commitment from Largest Shareholder
and $4MM Round of Financing Shows Confidence in Future
Function(X) Inc. (Nasdaq:FNCX), formerly DraftDay Fantasy Sports
Inc. (Nasdaq:DDAY) has completed an acquisition of assets of Rant
Inc., which complements its existing Wetpaint social publishing
business expanding into sports, lifestyle, and entertainment
verticals. Simultaneously with the purchase, Function(X)
successfully completed a PIPE transaction raising $4,000,000 for
use in the purchase and for working capital. In connection with
these transactions, Robert F.X. Sillerman has committed to convert
to Function(X) common stock all of the debt and preferred shares of
approximately $35MM, subject to certain terms, conditions and
restrictions. This conversion will further strengthen the Company’s
balance sheet. Aegis Capital Corp served as the placement agent for
the transaction.
Rant, Inc. is a leading digital publishing network that creates
original content -- most notably in sports, entertainment and pets
– that reaches major demographics. In 2015, Rant was named as the
18th Fastest Growing Private Company by Inc. magazine and the 31st
Most Promising Company in America by Forbes as its network
delivered up to 11 monthly visits per visitor, twice as much as
industry leaders BuzzFeed and Vox in some months. Adweek reported
that Rant’s flagship RantSports.com property was ranked #1 by
Quantcast for target digital ad buying for the 2015 holiday season,
indicating the power of reaching a targeted audience.
In their best months combined, Wetpaint and Rant have received
over 50 million monthly visitors to their properties. The combined
properties currently have approximately 15 million fans on their
Facebook pages and generate up to 300 million video views per
month. Wetpaint and Rant will have an editorial team of 30 writers
and will be able to draw upon content from more than 400
pre-screened writers.
Wetpaint (Wetpaint.com) is the fastest growing entertainment
news destination for millennial women. Covering the latest in
television, music, and pop culture, Wetpaint reaches over 10
million enthusiasts on a monthly basis. Cementing its position as a
leader in the social media industry, Wetpaint recently won the
award for Most Innovative Use of Social Media at Incite’s Corporate
Social Media awards. This honor showcases Wetpaint's resilience in
the face of numerous Facebook algorithm changes over the last year
and illustrates how effective its proprietary SDS technology is.
Wetpaint has also enjoyed a number of social media takeovers by
popular celebrities, most recently, when the Orange is the New
Black cast took Wetpaint fans on their float at the New York Pride
March.
Additionally, positive developments in the world of daily
fantasy sports gives the company many options, with several states
recognizing the appeal and benefits of this rapidly growing
industry. As the company explores those options, Draft Day Gaming
Group is positioned to expand in the U.S. with an active pipeline
focused on regulated operators. Outside of the U.S., Draft Day
Gaming Group launched the DraftStars daily fantasy platform for
CrownBet, the leading sports betting operation in Australia.
Robert F.X. Sillerman, Executive Chairman and Chief Executive
Officer, commented, “Function X is often referred to in mathematics
as the largest possible number. That is the goal of the company, to
achieve the maximum results possible. The combination of Wetpaint
and Rant along with the recent momentum in fantasy sports positions
us to achieve significant levels of success. Clearly, my commitment
to convert approximately $35MM of debt and preferred stock to
common equity reflects my confidence in FNCX.”
For details about the transaction, refer to the company’s
Current Report on Form 8-K as filed today with the Securities and
Exchange Commission.
About Function(X) Inc.
Function(X) operates Wetpaint.com, the leading online
destination for entertainment news for millennial women, covering
the latest in television, music, and pop culture and Rant, a
leading digital publisher that publishes original content in 13
different verticals, most notably in sports, entertainment, pets,
cars and food. Function(X) Inc. is also the largest shareholder of
DraftDay Gaming Group, which is well-positioned to become a
significant participant in the expanding fantasy sports market,
offering a high-quality daily fantasy sports experience both
directly to consumers and to businesses desiring turnkey solutions
to new revenue streams. Function(x) Inc. also operates 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.
Forward-Looking Statements
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, Function(X), 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160713005435/en/
For Function(X) Inc.:Investors:Mitchell Nelson,
212-231-0092Executive Vice PresidentorMedia Relations:Dian Griesel
InternationalLaura Radocaj, 212-825-3210lradocaj@dgicomm.com