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Summary:

So Flixster finally decided not to sell (or, that no one was willing to pay its blue-sky valuation hopes): the movie-based social service th…

So Flixster finally decided not to sell (or, that no one was willing to pay its blue-sky valuation hopes): the movie-based social service that’s popular on Facebook, has raised $5 million of a planned $8 million second round according to peHUB. The round was led by Pinnacle Ventures, with participation from past backer Lightspeed Venture Partners, which led the company’s $2 million first round.

The service kind of resembles Netflix (NSDQ: NFLX), without the DVD rental part — just the peer recommendations. There have been on-again/off-again rumors of an IACI (NSDQ: IACI) takeover, though that’s dead, and the fresh raise confirms that. Reports had said the company was seeking $150 million or more.

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  1. The environment has changed swiftly (from people I've been talking to) in Silicon Valley over the last 4-6 months…

    http://www.quantcast.com/flixster.com/traffic

    Take a look at flixsters traffic a sky high valuation only makes sense if it's not dropping. And, they are quantified publishers (meaning that's real data) not just a panel. So with dropping audience (seemingly by the truckload…) then it only makes sense buyers would drop by the way side & your next round would be lower than you'd like.

    Still, they've done a great job builiding up the site & network. It'll be interesting to see if the cash injection can make the traffic trend reverse itself.

  2. Yeah, who really use them! Audience from abroad (using cheap labor & click gimmics) doesn't count. Duhh… This is Web 2.0 bubble at its best (worst).

    Unless Lightspeed and Pinnacle get lucky, they will suck this bullet! Suckers!

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