NTN Buzztime, Inc. Announces Expansion of Social Entertainment Offering with Acquisition of Stump! Trivia
CARLSBAD, Calif., October 4, 2011/ PRNewswire – NTN Buzztime, Inc. (NYSE Amex: NTN – News), today announced the acquisition of the hosted live trivia event business Stump! Trivia from Trailside Entertainment, Inc.
Stump! Trivia, operating mainly in the Northeastern states, conducts approximately 300 hosted live trivia events a week, providing fun and exciting competitions in bars, restaurants and at special events. Stump! was founded 12 years ago by Bob Carney who will join Buzztime and remain with the business.
“Stump! Trivia has proven to be quite popular regionally as a turn-key, hosted live trivia event,” said NTN President and CEO Michael Bush. “We couldn’t be happier to broaden our current set of in-venue offerings by bringing them onboard. Further, we are pleased to have Bob Carney join our team and continue to grow the Stump! Trivia business alongside our core business.”
One of Stump!’s key assets is its staff of professional hosts, better known as “trivia jockeys” who function as part player recruiter, part MC and part advocate for the venues by encouraging incremental sales of food and drinks. Combined with Buzztime’s on-screen programming of trivia content under his/her control, a good trivia jockey can attract a sizeable group of patrons on what might otherwise be a slow night.
“Joining Buzztime is an amazing opportunity for us,” said Stump! founder Bob Carney. “We look forward to delivering the Stump! hosted trivia experience to the Buzztime network of 3,900 bars and restaurants and base of over 2 million registered players, in addition to bringing this unique entertainment to a whole range of venues and consumers that have yet to benefit from either Stump! or Buzztime. This is clearly a growth opportunity all around.”
Terms of the transaction, which were structured as an asset purchase, require NTN to pay $0.25 million plus an earn out in each of 2012, 2013, and 2014 that is dependent on gross margins achieved by the Stump! business. The effect of the Stump! acquisition is expected to improve Buzztime’s profitability and cash flow for the balance of 2011 and 2012, when considered on a standalone basis without potential synergies and not giving effect to the purchase price.
NTN Buzztime, Inc. (NYSE Amex: NTN) is a leading bar and restaurant social entertainment and integrated marketing platform. Trusted by 3,900 bars and restaurants in North America since 1985, Buzztime integrates trivia, card and sports games with in- and out-of-venue media and communication tools. With over 2,000,000 registered consumers and 50,000,000 games played each year, Buzztime loyalists spread the word and invite friends and family to their favorite Buzztime locations to enjoy an evening of fun and competition. With Buzztime entertainment and integrated marketing solutions, bars and restaurants attract new customers, turn casual visitors into regulars, and give guests a reason to stay longer. For the most up-to-date information on NTN Buzztime, please visit www.buzztime.com or follow us on Facebook or Twitter.
This release contains forward-looking statements which reflect management’s current views of future events and operations, including but not limited to statements about game offerings and content, expanded offerings, customer demographics, returns, stays and spending, market and audience reach, number of locations, and player participation. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the risks of adverse economic conditions, failure of customer and/or player demand, lower market acceptance or appeal of both existing and new products and services by particular demographic groups or audiences as a whole, termination of partnership and contractual relationships and the impact of competitive products and pricing. Please see NTN Buzztime, Inc.’s recent filings with the Securities and Exchange Commission for information about these and other risks that may affect the Company. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and NTN Buzztime, Inc. does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized.
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