The much anticipated IAC/Flixster acquisition isn’t going to happen, we’ve heard. The two parties got very close to a deal. Then, says a source, IAC summoned Flixster to a meeting in New York where they were told it wasn’t going to happen.
Why fly the company all the way to New York just to reject them in person? It seems like the polite thing to do would have been to just tell them by phone.
The reason for the change of heart? The price, rumored to have ballooned to $200 million or more, just wasn’t supported by Flixster’s declining unique visitor numbers – Flixster went from a high of 12 million monthly uniques in May 2007 to just 6.8 million in December. And IAC chief Diller’s ongoing battle with stockholder John Malone may have caused them to be more cautious with acquisitions.
Whatever the reason, Flixster’s back on the market. With such a hefty price tag, however, they may be there for a long, long time.
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