Flixster Raises $5 Million Of Planned $8 Million Second Round; No Sale

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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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Web2bubble

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!

Jeremy

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.

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