Why Viggle is a Short: Up To

66% Downside
Bleecker Street Research
June 3
rd
, 2014
Disclosure: We are short shares of Viggle, Inc (VGGL)
Robert Sillermans Public Track Record
Robert
Sillerman
Viggle
SFX
Entertainment
CKX
Entertainment
Riviera
Holdings
Circle
Entertainment
Circle Entertainment
SFX Entertainment
Declining User Growth
Declining User Engagement
Decreased Transparency
(Metric) 6/30/2014 12/31/2014 3/31/2014
MAUs

Time w/in App Per
session

Engagements/Day

Average Days
Active

What Do Employees Say?
Smart and vibrant team, shamefully wasted
The product no long works well, and is an
outright embarrassment (see the reviews) the
user base is plummeting.
Misery and frustration is rampant among
staff
Im not optimistic about the outlook for this
company
Source: Glassdoor

What Do Employees Say? (contd)
Sinking Ship
Pros: You work in a great neighborhood.
Cons: You work for Viggle, the worst company
of all time.
Advice to Senior Management: Respect
human beings.
Source: Glassdoor
What Do Employees Say? (contd)
Development team is poorly managed and
developers are not respected or trusted by
their own management (treated more as
resources than as people.
Management creates unrealistic schedules
and timelines and promotes them as accurate
throughout the company, then blames
developers when dates arent met.
Source: Glassdoor
Valuation
Viggle currently trades at $5.73
Market cap is $79 million
This puts Viggles P/S ratio at 4.59
Valuation
Base Case
Base Case (Viggle trade in-
line with entertainment
stock peers)
Viggle P/S: 2.48
Implied Share Price: $3.09
Downside: -46%

Bear Case
Bear Case (Viggle trades in-
line with S&P500 P/S)
Viggle P/S: 1.56
Implied Share Price: $1.95
Downside: -66%


The End