GetGlue kills plan to merge with social TV rival Viggle
Less than two months after Viggle agreed to buy social TV rival GetGlue for $80 million in stock and cash, GetGlue founder Alex Iskold announced on Sunday that the company decided to scrap the deal.
"We are moving forward as an independent company," Iskold wrote in a blog post, without detailing why he decided to kill the merger.
Viggle also didn't say why the deal was called off. CEO Robert Sillerman said in a statement released Monday that the company is pleased with its "positive momentum," and that the termination of the merger agreement was "cordial."
But it appears Viggle may have found it challenging to finance the deal. The company disclosed in a Securities and Exchange Commission filing on Friday that its board of directors approved increasing its line of credit from $15 million to $20 million. Sillerman has been financing Viggle's operations through Sillerman Investment Company LLC, according to SEC filings. Viggle reported in November that it posted a net loss of $19.4 million in the third quarter of 2012, compared to a net loss of $33.9 million in the third quarter of 2011.
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