Perk.com, the cloud-based mobile rewards platform provider, has signed an asset purchase agreement with mobile and web entertainment and marketing platform, Viggle Inc., paying 1.5m common shares, valued at $4.7m. Perk acquires the rights to the Viggle brand as well as the Viggle App that lets users discover content from brands in a more rewarding way. The deal is expected to close during Q1 2016. Viggle App’s sales team will be integrated into Perk’s operations team, but continues to operate from the Viggle New York office.
Viggle provides entertainment marketing and rewards
The Viggle App is an ad platform which allows users to earn rewards by watching TV and listening to music. Consumers also get to play games alongside TV shows, and share their thoughts on social media. For Q1 2016, the app reported $4m in revenues and 10m registered users.
Robert Sillerman, CEO and largest shareholder, Viggle, explains that both companies are intend on providing new opportunities for their user bases. Adding that Viggle’s management team will be devoted to develop the company’s existing line of products, he says:
“We believe that this combination is the next logical step in the evolution of digital reward platforms by providing scale to compete with an expanding array of online and mobile content available to users. We felt that by aligning with a seasoned management team and successful operator like Perk, that our shareholders will realize the full potential of the Viggle App’s development.”
Perk has long announced its intention to create a direct ad sales team to grow CPM and fill rates and to increase scale of its mobile user base to drive ad inventory and increases revenue. With the acquisition of Viggle, Perk fulfills these objectives. A larger Perk ecosystem creates a user base of 20m registered users and $50m in rewards issue.
Ted Hastings, CEO, Perk, adds:
“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. With the Viggle App, consumers are introduced and guided to various forms of media while advertisers are provided with a vehicle that delivers their message directly to their target audiences. 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. We view this transaction as an exciting opportunity not only for the Company, but for our users, advertising partners, employees and our shareholders. We look forward to keeping investors apprised of our progress as we move towards closing.”