Social TV firms Viggle, GetGlue merge

Viggle, the social TV start-up created by American Idol entrepreneur Robert FX Sillerman, will pay US$25m and 48.3 million shares to acquire rival GetGlue.

The deal is contingent on Viggle securing US$60m of additional financing.

The combined companies will have a total of 4.4 million users, bringing together GetGlue’s 3.2 million and Viggle’s 1.2 million.

GetGlue raised US$24m in funding to date, with investors including Time Warner, which contributed to the most recent US$12m round in January this year.

Viggle was born out of a company Sillerman set up called Function(x), which raised US$35m in August 2011 through a stock market placement, having previously acquired a listed shell company called Gateway Industries.

Viggle went on to buy out a start-up called Loyalize in February this year and has since set about taking the ‘TV check-in’ model to the next level – giving viewers physical rewards in return for watching TV rather than only virtual badges.

The news comes as the pace of consolidation quickens in the social TV space, with audience measurement firm Nielsen acquiring SocialGuide for an undisclosed sum last week, Zeebox launching in the US with backing from the likes of Comcast, and others such as one-time GetGlue rival Miso changing tack.

GetGlue founder and CEO Alex Iskold will join Viggle in an senior executive position on its management team and as a member of its board of directors. Viggle, which terminated its CEO Janet Scardino’s employment this August, will also absorb all 34 GetGlue employees.

“With this deal, we are combining very experienced and creative product, engineering and management teams that will continue to build great user experiences and provide industry-leading platforms for consumers, networks and advertisers,” Sillerman said in a statement.

Iskold added: “GetGlue has built a social TV product that people love, and Viggle has become their favourite loyalty programme for TV. Together we are positioned to deliver the next-generation second-screen experiences that delight and benefit users, networks and major brands.”

For in-depth profiles of both Viggle and GetGlue see the articles here and here, which form part of C21’s Social TV season.