"The two companies remain friendly and think highly of each other," GetGlue said, adding that it is "moving forward as an independent company."
[More from Mashable: GetGlue Acquired by Competitor in $73 Million Deal]
In an unexpected move, Viggle acquired GetGlue for $73 million last November. The three-year-old startup, which describes itself as a "loyalty program for television," paid $25 million in cash and 48.3 million shares of stock for its competitor.
Commentators expressed surprise at the acquisition, as Viggle is a much newer and lesser-known brand. GetGlue, which launched in 2007, has 1.2 million registered users, while the latter boasts 3.2 million.
[More from Mashable: ‘Once Upon a Time’ Breaks GetGlue Record]
One reason for the failed merger may be Viggle's precarious financial situation. The company reported a loss of $96.5 million on revenues of $1.7 million in the fiscal year ending June 30, 2012, according to a 10-K filing with the Securities and Exchange Commission. At the time of the acquisition, Viggle president and coo Greg Consiglio told Mashable that the deal would only close if it successfully raised $60 million in debt financing.
GetGlue and Viggle did not immediately respond to requests for comment.
The two companies are considered competitors in the "second-screen space," as both offer awards for check-ins and other types of engagement with television programs.
What are your thoughts on this failed merger? Share in the comments below.
Image courtesy of Flickr, futureatlas.com
GetGlue is a sticker paradise. Huge variants of GetGlue stickers adorn the walls of the office from the elevator to the break room.
This story originally published on Mashable here.
- Mergers, Acquisitions & Takeovers