CARLSBAD, Calif., Oct. 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.
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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.
About Buzztime
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.