Southampton entertainment executive Robert F.X. Sillerman is offering $10 million for 25 percent of the Wetpaint unit of loyalty marketing company Viggle Inc. If accepted, the deal would give him an option to buy the remainder of Wetpaint within 24 months for $40 million.
Sillerman, CEO of Manhattan-based Viggle and a former chancellor of Southampton College, emailed the offer to Viggle's board of directors on Thursday.
The company's Wetpaint unit offers entertainment news and gossip to a target demographic of women ages 18-34.
"I have asked Viggle's board to consider this a serious offer that, although subject to certain customary conditions, is in every party's best interest," said a statement by Sillerman, who also serves as chief executive of SFX Entertainment Inc., also based in Manhattan.
In February, Sillerman offered to take SFX, an electronic dance music company, private for $4.75 per share. At the time of the offer, he owned about 37.8 percent of the company's outstanding stock. The company formed a special committee of outside directors to evaluate the proposal. Tuesday, SFX shares closed up 2 cents to $4.42.
Viggle offers access to TV shows, movies and music to users who accumulate virtual currency and rewards such as gift cards by watching specified shows or commercials. Viggle went public in April 2014. Tuesday, the company's stock fell 2 cents to close at $1.52, a fraction of its 52-week high of $23.50, according to Bloomberg.