Viggle CEO Proposes To Buy 25% Of Co.'s Wetpaint Business For $10 Mln; Stock Up

(RTTNews) - Robert F.X. Sillerman, the founder, executive chairman and chief executive officer of Viggle Inc. (VGGL), has proposed to acquire, either individually or through his affiliates, 25 percent of the company's Wetpaint business for $10 million in cash.

In addition, as part of his proposal, he would receive an option to acquire the remaining 75 percent of Wetpaint within 24 months for $40 million. The latter amount would be payable by a minimum of $20 million in cash, and the balance by the issuance of a five-year note bearing interest at 6 percent per annum.

Viggle Inc. is a mobile and web-based entertainment marketing platform for media companies, brands, and consumers. Wetpaint, a property of Viggle, is an entertainment web destination that targets the 18-34 female demographic.

The offer would be subject to the receipt of all necessary approvals by the Viggle board of directors and any special committee formed for the purpose of evaluating the proposal, and the execution of a mutually agreeable stock purchase agreement.

Separately, Viggle has confirmed that it has received a proposal from Robert F.X. Sillerman for the acquisition of a 25% interest in the company's Wetpaint business for an aggregate consideration of $10 million in cash.

Viggle's Board of Directors expects to form a Special Committee of independent directors to evaluate the proposal from Sillerman.

VGGL closed Thursday's trading at $1.45. In Friday's pre-market trading, the company's shares are up $0.32 or 22.07 percent to $1.77.