Update: See Troubled Insider Pages Acquired By CitySearch
Insider Pages, a user generated review site for local businesses, has been acquired by a public company, according to sources close to the deal. I also spoke with Insider Pages' VP Marketing Anne Raimondi, who declined to comment.
The company, originally founded by idealab, has faced heavy competition from Yelp and others. They closed a $8.5 million round of financing from Sequoia and Softbank Capital in March 2006, but let a substantial number of employees go at the end of the year. Another company in this space, Judy's Book, made substantial changes to their business model to avoid the same layoffs.
Our understanding is that the acquisition price is more than the total capital raised by the company, but not by much. More details as they become available.