US social TV app GetGlue has been purchased by lesser-known entrant Viggle (based in New York City) in a cash and stock transaction worth more than US$75mn.
The agreement signed involves the acquisition of GetGlue for US$25mn in cash plus about 48.3mn shares of the company’s publicly traded stock, worth around US$53mn at their closing price on Friday 16th November.
Viggle will run both brands and continue to employ GetGlue’s 34 employees, with GetGlue founder and CEO Alex Iskold taking a senior executive position and a board seat at Viggle.
Viggle describes itself as a loyalty programme for television, in which it awards its 1.2mn users points for checking in via an app when they watch TV shows, which they can then cash in for gift cards from partners including Barnes & Noble, Best Buy and Apple iTunes.
The GetGlue app also allows its 3.2mn users to check in, but with the object of creating personalised TV guides and chatting along with friends whilst watching a TV show.
GetGlue released a new version of its app in summer 2012 called GetGlue HD, offering personalised user recommendations of what to watch and personalised streams for content related to the show.
The US market for second-screen apps is beginning to look increasingly tough to carve a niche in: Yahoo unveiled version 3.0 of its IntoNow app last July, and UK startup Zeebox launched stateside last September with some big-name partners, including Comcast, NBC Universal, and HBO.