UGC Buys Out the Critics: Flixster Acquires Rotten Tomatoes

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In a bit of an unconventional deal, startup Flixster is acquiring Rotten Tomatoes, the authoritative online movie review aggregator, from News Corp (s NWS). The acquisition gives News Corp. (s NWS), via its subsidiary IGN Entertainment, a minority stake in Flixster, which operates movie trivia and fan review applications on social networks and mobile devices.

The combined company will continue to operate separately branded properties for user-generated and professional movie reviews. Together, they have 30 million monthly uniques, 2.3 billion user reviews, 500,000 critic reviews, as well as movie information and social games, according to a press release.

The first reports of the deal came last month from Kara Swisher at BoomTown, who said at the time that News Corp. was considering buying Flixster. Update: Swisher points out that she later reported the deal would be a combined independent company, as was indeed the result.

Prior to the deal, Flixster had $7 million in funding from investors including Lightspeed Venture Partners, Pinnacle Ventures and Reid Hoffman.

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