Evaluating only GetGlue’s profile at its peak — without knowing the outcome — the model ranked Acquisition gone wrong as the #1 likely cause. Documented cause: Unit economics.
Key Events Timeline
FOUNDING
Alex Iskold founded GetGlue in New York as an entertainment recommendation engine
FUNDING
Raised total of $24M with backing from TimeWarner Investments and Union Square Ventures
PRODUCT LAUNCH
Reached 4M users with sticker reward check-ins; struck deals with HBO, ABC, CBS
ACQUISITION ATTEMPT
Acquired by i.TV for ~$25M and rebranded as Viggle, a near-total loss for investors
Full Analysis
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Documented cause
GetGlue, founded by Alex Iskold, raised $24M and amassed 4 million users doing entertainment check-ins with collectible sticker rewards. Despite partnerships with HBO, ABC, and CBS, the business model depended on TV network ad deals that never scaled. i.TV acquired GetGlue in December 2012 for approximately $25M, rebranding it as Viggle — a figure barely covering the total capital raised, disappointing investors from Union Square Ventures and TimeWarner Investments.
Lesson
“User engagement through collectibles doesn't translate to ad revenue without massive scale and precise demographics.”