Micro-Cap Viggle (VGGL) Skyrockets After Perk.com Buyout Announcement

The mobile marketing company, Viggle Inc.

.42 percent, agreed to sell a number of its assets on Monday, including the Viggle rewards and applications program to Perk.com in an all-stock transaction. Micro-Cap Viggle will rename itself as DraftDay, following the acquisition of its recently acquired fantasy sports company, DraftDay Gaming Group subsidiary, trading under the symbol DDAY reserved with NASDAQ. DraftDay will remain an entertainment publishing site including the Viggle platform to Perk.com while divesting assets.

estimates that revenue for the fantasy sports market has grown at an annual rate of 10.8 percent to $2.0 billion from 2010 to 2015. DraftDay will have a differentiated platform in the industry. The company plans to focus on B2B partnerships, including new ventures with companies. Perk.com (PER.TO), trades on the Toronto Stock Exchange, is a leading cloud-based mobile rewards platform provider headquartered in Austin, Texas. Perk.com is paying in $4.7 million worth in shares along with a $1M advance, subject to some performance conditions, and Viggle will get two warrants to purchase a total 2M Perk.com shares. Viggle chief Robert Sillerman says if earnouts are achieved and warrants become exercisable, Viggle will have gotten about $75M in consideration. Robert F.X. Sillerman, Executive Chairman and Chief Executive Officer, stated, "We believe this transaction will be a win-win for all participants to the transaction, including our shareholders, as we expect to benefit from two fast growing digital spaces with DraftDay Gaming Group and our stake in Perk.com. The transaction will allow us to achieve continuing upside of a significant ownership position in this exciting combination of businesses." Mr. Sillerman also said, "Assuming the earnout is achieved and the warrants become exercisable, Viggle will have received approximately $75MM in consideration, with continuing potential upside for Viggles' shareholders." Viggle's buyout transaction is expected to close in early 2016, subject to the customary closing conditions.