There has been a growing demand for content among customers globally. Has seen several media keep on reinventing themselves to as to keep at pace with this growing demand. According to Cisco whitepaper projections, the figures are mind-numbing with total internet traffic likely to hit a zettabyte in 2016. In simple terms, this is over 110 million years of high-definition video.
FunctionX Inc (NASDAQ:FNCX) led by Robert FX Sillerman, a media mogul is taking aggressive steps in building a portfolio of assets in an effort to corral viewers and command a bigger share of the market. Function(X) which owns Wetpaint.com that is well known for entertainment news said it has reached a deal to acquire the full equity interest in the BumpClick LLC media company. BumpClick uses high technology and relationships in the industry to maximize distribution and increase revenue using its network of websites and over 60 million social followers.
BumpClick assets will be joining a Function(x) portfolio which include Wetpaint.com, the company’s digital marketplace platform Choose Digital and Rant, Inc the proprietor of the popular RantSports.com that was acquired by Function(x) last July. Since the acquisition of Rant, Function(x) has broadened its portfolio to cover more brands topics like fitness, lifestyle, celebrities and tech. Function(X) also has majority ownership DraftDay Gaming Group that owns DraftDay.com, a fantasy sport site.
According to details in an 8-K filed with the Securities and Exchange Commission, Function(x) is paying a cash amount of $10.0 million plus $15.0 million in stock to acquire BumpClick. Out of the $15.0 million stock payment, $6.0 million will be held in escrow and will be released upon reaching certain performance criteria
Function(x) has stepped up acquisition of key components needed for their growth strategy. Apart from its legacy holdings BumpClick has acquired ViralNova, LLC and its flagship property http://www.viralnova.com. Following the acquisition, ViralNova is part of Function(x) portfolio together with BumpClick social assets and several other content management system plus reporting software popularly called “Nova.”
Following the acquisition, BumpClick founder and CEO and Sean Beckner will be given a senior management position in the Function(x) organization