We’ve received a number of tips indicating that that Jellyfish’s flagship product, online social shopping show Smack Shopping, is going to be shut down. This is surprising move for Jellyfish, a Microsoft-owned online shopping portal, since the premise of the show is based around the audience creating hot (low-cost) deals on online products. In a economy where a good deal is desirable, one would think Smack Shopping could survive. Scheduled shows used take place 24-hours a day, 365 days a year, but last year Jellyfish changed Smack Shopping format to only one show per weekday and none on the weekends.

We wrote about Microsoft acquiring the discount online shopping service, Jellyfish, in 2007. And creators and serial entrepreneurs Brian Wiegand and Mark McGuire have had several successes in the start-up world, with the most recent, Alice.com, set to launch this March. When Microsoft bought Jellyfish, they seemed optimistic about the website, saying that they “think the technology has some interesting potential applications as we continue to invest heavily in shopping and commerce as a key component of Live Search.”

Here’s the email sent to registered users.

Dear SmackShopping User,

Thank you for using SmackShopping and participating in the SmackShopping
community over the past few years. Regrettably, we are closing down the
site effective February 16, 2009. SmackShows, chats and other interactive
SmackShopping services will be discontinued at this point. However, you
will be able to redeem any coins you have accrued for 90 days (until May
15, 2009). At the end of 90 days the site will be brought down completely.

Please do not reply to this email, but if you have any questions, please
contact us at questions@smackshopping.com.

Sincerely,

SmackShopping Team

We’ve added SmackShopping to the Deadpool.

Thanks to Shawn Rubel for the tip.