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DraftDay Gaming Group formed
Wednesday, September 9, 2015 : VIGGLE - SPORTECH J.V. ACQUIRES DRAFTDAY FROM MGT
DraftDay Gaming Group formed.
DraftDay Gaming Group, a new entity formed by a joint venture between Viggle Inc. and Sportech Digital has completed the acquisition of fantasy sports business DraftDay from MGT Capital Investments.
“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,” a company statement said.
The new entity is 44 percent owned by Viggle, 35 percent Sportech Digital and 10 percent MGT Capital with the balance owned by employees and other shareholders.
Robert F.X. Sillerman will serve as Chairman of the Board of the DraftDay Gaming Group, and current president of Sportech Digital, Rich Roberts, as chief executive officer.
Nic Sulsky, formerly of Sportech Digital, was named President, and John C. Small, chief financial officer of Viggle, will act as chief financial officer of DraftDay Gaming Group.
Larry Kom, formerly chief information officer of MGT, will join DraftDay as chief technology officer, accompanied by the full product development team.
MGT earned $5.0 million in total consideration, comprising Promissory Notes of Viggle Inc., restricted shares of VGGL common stock, and a retained equity interest in the new venture.
In addition, MGT receives warrants exercisable into the new entity.
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