News Corp. Got $12.5 Million In Flixster Stock For Rotten Tomatoes

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Credit: Flickr/heath_bar

News Corp. (NYSE: NWS) received $12.5 million in Flixster stock when it sold its Rotten Tomatoes movie reviews site to the startup last month, according to an SEC filing. We first reported about it on Twitter this morning, though the filing wasn’t clear enough on the mix of stock and equity. Flixster CEO Joe Greenstein, however, tells us not to read too much into the figure because “this was an all stock deal — so there actually was no specific market valuation for either Flixster or Rotten Tomatoes.” (In a follow-up, I asked Greenstein what the figure therefore meant and he explained that he wasn’t “exactly sure what formulas or benchmarks are used for SEC filings.”) Flixster has raised about $10 million in funding over two rounds. Two years ago, the site was reportedly looking to sell itself for $150 million but it’s unlikely that valuation still stands since there were no takers.

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