Barry Diller balks at Flixster's $150 million price tag
Barry Diller's IAC began talks to acquire Flixster, but then dropped the idea as soon as the two-year-old, 17-employee company priced itself at $150 million, according to Boom Town. And it seems IAC isn't the only one saying no. Execs from Viacom's MTV Networks gave Flixster a look, but also decided the price was too high. Flixster's Facebook application, Movies, claims 804,748 daily active users, a milestone achieved with just $2 million in funding from Lightspeed Venture Partners. So what's keeping buyers so shy, besides the lofty price?
Likely as not, it's Flixster's desperation to sell. When you try to hire engineers with the promise that your company has "liquidity written all over it," potential buyers get the hint, too. It's kind of like trying to bluff while holding your cards facing out.