Perk to acquire rewards app Viggle - Mobile World Live

Perk to acquire rewards app Viggle

16 DEC 2015

Perk, a mobile rewards platform company, is to buy rewards app Viggle, which “uses incentives to make content consumption and discovery more rewarding for media companies, brands and consumers”.

Perk will buy the rights to the Viggle name and brand as well as the entirety of Viggle’s interests in its app, with the seller subsequently renaming itself DraftDay and focusing on the fantasy sports market.

The Viggle app allows users to earn points by watching TV and listening to music, as well as playing trivia and sports games. Revenue for the app was $4 million in the quarter to 30 September 2015, and it has 10 million registered users.

Perk plans to integrate the app’s sales team into its operations and believes the move will help it create a “combined user base of over 20 million registered users” with “over $50 million in rewards issued”.

Ted Hastings, CEO of Perk, said: “Viggle shares a similar vision as Perk of creating an interactive environment that benefits both users and advertisers by rewarding users for their daily activities.”

“We feel the app will blend seamlessly into our sphere of mobile applications and provide users with greater options of quality content and reward benefits,” he continued.

Perk will pay for the deal in stock valued at $4.7 million, with an earn-out if revenue targets are met, and warrants for future share purchases. It is also providing a loan of $1 million, repayable either in cash or through a reduction in the number of Perk shares issued to Viggle.

At the close of the deal, Viggle will hold 7 per cent of Perk, and after earn outs and if all warrants are exercised, this could increase to 22 per cent.

Closing of the acquisition, subject to customary conditions, is expected to be completed in the first quarter of 2016.

Robert FX Sillerman, CEO of Viggle, said: “We believe this transaction will be a win-win for all participants to the transaction, including our shareholders, as we expect to benefit from two fast growing digital spaces with DraftDay Gaming Group and our stake in Perk.”

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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