UPDATE: A Lockerz rep reached out to deny our report that it had purchased Plixi — one of the world’s biggest Twitter photo services — for less than $5 million, calling this figure inaccurate.The company still refuses to discuss the terms of the deal.
After hearing from Lockerz, we reached back out to our source who had originally said the deal was less than $5 million. This person now admits less than 100% confidence in the “less than $5 million” figure, but strongly believes it is less than the $10 million that TechCrunch had initially reported.
However, earlier, Lockerz’ founder had told us that the $10 million to $15 million range that TechCrunch had reported was inaccurate, too; see below.
Meanwhile, TechCrunch has reached back out to its sources, and says “we have two separate sources confirming our range, and we stand by our report.”
At this point, we are not confident in the “less than $5 million” figure we had earlier reported, but we also STRONGLY think that this deal was not more than $15 million. (That would be very surprising.)
So it seems likeliest that the deal was more than $5 million, but less than $10 million.
We’ll keep digging. Let us know if you know more: [email protected]
Earlier: One of the biggest Twitter photo sharing services in the world, Plixi — formerly TweetPhoto — just sold for peanuts.
We are told that Plixi fetched less than $5 million from members-only social site Lockerz, according to a source familiar with the situation.
That’s far below the $10 million to $15 million that TechCrunch, which first announced the deal, had reported.
And that’s about twice the $2.6 million in financing that Plixi had raised, according to CrunchBase. Not a complete fire sale, but not a victory.
Why so little?
While Plixi was able to attract a massive audience — more than 25 million unique visitors, it bragged in December — photo sharing services are notoriously bad businesses.
And Twitter is probably going to come out with its own competitive photo sharing service soon, which could demolish Twitter photo sites like TwitPic, Yfrog, and Plixi. Wonder why Plixi changed its name from TweetPhoto in the first place?
Lockerz founder Kathy Savitt, a former Amazon executive, said that the $10 million to $15 million amount cited by TechCrunch is not accurate, but refused to elaborate on the deal’s terms.
She describes the deal as two startups coming together for mutual benefit, and says that photos are just the beginning of Lockerz’ media sharing platform.