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Update: With some very interesting timing, RockYou has gone ahead and announced its Series B round today from Partech International, Sequoia and Lightspeed Ventures. Coincidence?
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We had the early word on amazing Flash tools startup Flektor during the private beta in March, and now Techcrunch reports that they're likely being bought by MySpace. We waited for more details from that source, but all we know is that yes, they are talking seriously, no, it's not a done deal and the price may not be accurate (couldn't confirm the actual price - must be lower than the $10-20 million, higher would be ridiculous). There's at least one more acquisition being discussed in this space, which also can't be mentioned but will come out pretty soon if it goes ahead. Consolidation is on the cards.
But I think the Flektor deal will be closed and announced soon, if only because of the talent of the creators: combine the audience and scale of Photobucket with the hip development and design skills from the Flektor team and you have a killer combination. Depending on your perspective, that might spell trouble for RockYou and Slide.com: MySpace seems to have completed the circle, and may not need to snap up any more add-ons. Other media companies looking to acquire those services would have to bear in mind that MySpace can break them in an instant.