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Former Fandango CEO Takes the Helm at Swagbucks, Raises $60 Million


By Lucas Shaw

Online rewards provider Swagbucks has raised $60 million from Technology Crossover Ventures to invest in mobile offerings, new products and international expansion, parent company Prodege LLC said Tuesday.

Chuck Davis, the former CEO of Fandango and Shopzilla, will take over as CEO of Swagbucks after 16 months as executive chairman of the company. Josef Gorowitz will switch from the position of CEO to president.

Gorowitz founded the company to reward customers for their online behavior. Users earn points by watching videos from the Food Channel and the BBC, shopping at Amazon and Wal-Mart and answering surveys for market research firms.

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Gorowitz told TheWrap the average household enrolls in 18 different rewards program, and he believes Swagbucks can centralize that process. His pitch appealed to Davis, who previously took an investment from TCV at Shopzilla.

"I see myself as a consumer; I love saving money in good and bad economies, I love getting rebates and I love getting rewards," Davis told TheWrap. "A lot of people are already spending time doing every day tasks, and I don't see sites rewarding customer for their loyalty. We're here saying we will take care of that for you across multiple tasks and stores."

Swagbucks generated $53 million in revenue in 2013, 51 percent more than it did in 2012, and it has been profitable since 2010. It makes money via affiliate commissions and sharing revenue through pay-per-click deals.

Also read:  Fandango Buys and Its Massive YouTube Network

The company has 10 million registered users, four million of whom use it on a regular basis. Davis oversaw Fandango's launch onto mobile platforms, a feat he'd like to repeat at Swagbucks.

"We wanted to bring in a strategic investor to grow this thing to new heights," Davis said. "All while looking out for the consumer."

The post Former Fandango CEO Takes the Helm at Swagbucks, Raises $60 Million appeared first on TheWrap.

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