When rumors come true! Two weeks ago we reported on a tip that social TV startup Dijit, maker of the NextGuide iPad app, was in the process of acquiring quasi-competitor Miso. The deal took a little bit longer than we expected to actually get done, but the companies are announcing this morning that the tie-up is complete.
Through the deal, Dijit will get a bunch of technology and patents that Miso has built over the last three years as one of the first second-screen or social TV apps. But while the companies have definitively struck an agreement for Miso to be acquired, there’s still a lot that’s up in the air. For instance, it’s not clear how many of Miso’s nine employees will be joining Dijit. Or how Dijit plans to incorporate Miso’s technology and community into its own applications.
One thing that is certain: Miso founder Somrat Niyogi will be stepping away from the day-to-day, although he will remain as an advisor to the combined company. Also, according to CEO Jeremy Toeman, Dijit will shut down Miso’s recently launched Quips app, which was designed to allow users to share specific moments from their favorite TV shows.
Miso’s other products — its legacy TV check-in app and its Sideshows companion app — could live on, but Toeman said he wants to have a unified identity system to integrate them. The company will be looking for ways to move Miso users into its own NextGuide system.
While Miso had been working on ways for users to share what they’re watching, and for providing more information and content around shows, Dijit’s NextGuide is more focused on discovery. Toeman said that the tie-up could provide better ways for Dijit to connect users with new shows and connect shows to a new audience, as we all enter a “second era of social TV.”
“We’re definitely somewhere different than where we were three years ago,” Toeman said.
Terms weren’t disclosed and Toeman wouldn’t comment on the deal structure, but we had previously heard that it was more likely to be an equity swap than a cash deal. That makes sense, as Dijit hasn’t raised a ton of money. Toeman confirmed that the company had previously raised a small seed round last year, but wouldn’t comment on how much. Miso, meanwhile, had raised about $6 million over the last few years, with investors including Khosla Ventures, Google Ventures, and Hearst Interactive Media.