Television loyalty service Viggle has acquired social TV application GetGlue for $25 million in cash and 48.3 million shares of stock, but industry participants are questioning how the combination will benefit the roughly four million users of both services.
When asked whether members of each service will gain access to the other network and if the companies have plans to combine services so users can eventually check in for both stickers and points, Viggle president and COO Greg Consiglio says, "We have nothing to announce at this time."
As a result of the deal, Viggle will operate both brands. GetGlue founder and CEO Alex Iskold will join Viggle in a senior executive position and as a board member. GetGlue's 34 employees will also join Viggle.
In a prepared statement, Robert F.X. Sillerman, executive chairman and CEO of Viggle, said the deal increases Viggle's user base and quadruples its network partnerships.
In addition, Consiglio says Viggle will be able to extend its monetization strategy across a larger footprint.
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. It has more than 3.2 million registered users.
Viggle, on the other hand, has 1.2 million registered users. Its members 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.
In addition, Viggle has real-time engagement experiences, including Viggle Live, a program of voting, trivia and polls, and fantasy sports game MyGuy. Both platforms also allow Viggle users to earn points as well. Viggle is available for free download from Verizon Apps, Google Play and the Apple App Store.
In a post on GetGlue's blog on Monday, GetGlue says it will be "business as usual" in the coming weeks.
Despite a complaint in the comments that says, "Funny, the article states ‘Don't worry stickers are not going away!', yet there are pages and pages of people stating they have not gotten their stickers in months and in a few cases, over a year!!!!!," Iskold says, "We plan on keeping both digital and physical stickers. Both networks and fan love having them and we have some interesting plans for them going forward."
GetGlue was backed by $24 million from investors including Rho Ventures, TimeWarner, RRE Ventures and Union Square Ventures.
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March 19, 2014