The planned merger between US social TV start-ups Viggle and GetGlue has been called off, with the latter saying that it will remain independent.
In a brief blog post announcing the decision, GetGlue CEO Alex Iskold said that though the merger will now not happen, the “two companies remain friendly and think highly of each other.”
“We are moving forward as an independent company, and all of us at GetGlue are excited about growing our social network and the leadership position on the second screen,” said Iskold. “We have a strong product and partnership pipeline for 2013, and look forward to delighting our users and expanding the relationships with major networks, studios and brands.”
Viggle, the social TV start-up created by American Idol entrepreneur Robert FX Sillerman, first announced plans in November to pay US$25m and 48.3 million shares to acquire rival GetGlue – at the time putting a value of some US$70m on the deal.
However, the arrangement was contingent on Viggle securing US$60m of additional financing, and as of last week it had still not managed to do so.
In a filing to the US Securities and exchange commission dated January 8, Viggle said it is in the process of “discussing an extension” with GetGlue for the deadline of the merger, which was originally set for December 19 last year.
Two days later Robert Sillerman, through his affiliate firm the Sillerman Investment Company, extended Viggle’s credit line from US$15m to US$20m. The SEC filing said this was to “fund working capital requirements and for general corporate purposes.”
No further details were given by either firm about the reasons behind the scrapped deal.
GetGlue has raised US$24m in funding to date, with investors including Time Warner, which contributed to the most recent US$12m round in January last year.
For in-depth profiles of both Viggle and GetGlue, as well as analysis of the latest trends, strategies and players in this fast-evolving sector, download C21′s Social TV report here.