WSJ: IAC To Buy Flixster

The Wall Street Journal reports that IAC is close to purchasing Flixster, an online movie social networking site.

On-again, off-again talks between IAC/InterActiveCorp., which Diller runs, and Flixster, a social-networking site for movie fans, have heated up again and a deal could be near, according to people familiar with the situation. An announcement could come as early as next week, one person says.

Of course, the two parties have been down this road before. They almost reached an agreement in December, the people noted. There’s no guarantee talks won’t break down again. If a deal is reached, its likely to be at a lower price than the roughly $150 million Flixster, of San Francisco, had been asking for last year.

Comments

[Jim]

Good luck monetizing that, IAC. Assume you can sell BB and Netflix acquisitions at $30/$40 a pop if you pimp out the user base. Assume you can convert 1% of Flixster's users. That will net you $30-$40M in total. I'm betting IAC will still overpay.