Viggle and Sportech Team Up to Buy DraftDay from MGT Capital
As if Viggle Inc. (NASDAQ: VGGL) was not already one of our top picks for advertising technology with their rewards program for enjoying your favorite television and media. Now they are making waves today with the acquisition of 44%, a controlling interest as a joint venture of DraftDay.com and entering the fantasy sports arena.
As the market catches on to what is going on here as well as billionaire CEO Robert Sillerman’s history with building brands we think this one just got a lot hotter and will attract more attention in the next days and week’s ahead.
Excerpt from today’s press release
HARRISON, N.Y., Sept. 9, 2015 /PRNewswire/ — MGT Capital Investments, Inc. (NYSE MKT: MGT) announced today that it has completed the sale of its daily fantasy sports assets to a new entity formed by Viggle Inc. (VGGL) and Sportech Digital, a subsidiary of Sportech PLC (SPO.L). The new company, called DraftDay Gaming Group, Inc. will continue to offer the same high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams.
By combining and capitalizing on the well-established operational business assets of DraftDay, Sportech and Viggle, the new company is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with player retention and brand loyalty second to none in the industry. Viggle assets MyGuy and Viggle Football have already met with great success by offering exciting real-time interactive participation to its nearly 10 million registered users in tandem with professional and college football and basketball games. Sportech is one of the world’s leading betting organizations, operating in 30 countries and employing over 1,000 people. DraftDay will be the differentiated platform in the industry, having a leadership team highly experienced in B2B aggregated network operations and regulated gaming markets.
Viggle owns 44% of DraftDay Gaming Group, Sportech owns 35%, MGT owns 10%, with employees and other shareholders owning the balance. Robert F.X. Sillerman will be the Chairman of the Board, with Rich Roberts, current President of Sportech Digital, serving as DraftDay CEO. Nic Sulsky, formerly of Sportech Digital, will be President, and John C. Small, CFO of Viggle, will act as CFO of DraftDay. Larry Kom, formerly CIO of MGT, will join DraftDay as CTO, accompanied by the full product development team.
The transaction provides MGT with approximately $5.0 million in total consideration, consisting of Promissory Notes of Viggle Inc., restricted shares of VGGL common stock, and a retained equity interest in the new venture. Additionally, MGT receives warrants exercisable into the new entity. Today’s transaction also materially reduces the Company’s ongoing burn rate.
For more detailed information, please refer to Forms 8-K filed today with the Securities and Exchange Commission by VGGL and MGT. Additional information can also be obtained from Viggle’s press release filed this morning.
About MGT Capital Investments, Inc.
MGT Capital and its subsidiaries own and operate social and real money gaming sites online and in the mobile space, including MGTplay.com and SlotChamp™. In addition, the Company owns intellectual property relating to slot machines and has asserted its claims via patent infringement lawsuits. MGT also has ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and Viggle Inc., operator of an online entertainment marketing and rewards platform with 10 million registered users.
Full PR: http://finance.yahoo.com/news/viggle-sportech-team-buy-draftday-123000629.html
Expecting some good action here.
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