Viggle Inc (NASDAQ:VGGL) announced that it obtained a proposal from its CEO, Executive Chairman and founder Robert F.X. Sillerman for the purchase of a 25% interest in the firm’s Wetpaint business for a total consideration of $10 million in cash. The company is a web-based and mobile entertainment marketing platform for consumers, brands and media companies.
Wetpaint.com is a main property of Viggle and is an entertainment web place that targets the 18 years to 34 years female demographic. It at present has a collective social reach of around 10 million total fans and almost sixteen million monthly visitors. The monthly page views stands at 71 million. As per the proposal, Sillerman has offered to pay the company $10 million in cash for a 25% stake in the Wetpaint operations. His proposal further offers him with an option to buy within 24 months the left behind 75% of the Wetpaint operations for $40 million. The consideration will be payable by at least $20 million in cash and $20 million via the issuance of a five year note.
Viggle Inc (NASDAQ:VGGL) said that Sillerman’s proposal deal depends on the receipt of all essential approvals of the company’s Board and also from Special Committee if any constituted for the purpose of assessing the proposal, and implementation of mutually accepted stock purchase deal. It also stated that any form of deal would be concluded after the completion of customary closing conditions. The Board of Directors intends to create a Special Committee of independent directors to assess the proposal from Sillerman.
Viggle is an entertainment marketing firm and also a rewards platform that rewards its members for discovering new music and watching TV shows. It had an average monthly reach of almost 26 million making it an attractive company in the industry.