Time Warner subsidiary Warner Bros. Entertainment, Inc. has acquired Flixster. Flixster is a social network that is centered around movies. Through the acquisition, Warner Bros. also gains possession of the valuable Rotten Tomatoes brand. News Corp. sold Rotten Tomatoes to Flixster in exchange for cash and equity last year.
Warner Bros. had an interest in acquiring Flixster since this past March. Flixster’s valuation was rumored to be around $60-$90 million. The company had raised around $7 million in venture capital funding since they launched.
Flixster has a cross-platform movie discovery application and a mobile platform. They saw about 35 million downloads thus far. Rotten Tomatoes receives about 12 million unique visitors per month. Rotten Tomatoes is also heavily integrated into iTunes.
Below is an excerpt from Warner Brothers’ press release:
Warner Bros. Home Entertainment Group will utilize the powerful Flixster brand and technical expertise to launch a number of initiatives designed to grow digital content ownership, including the recently announced consumer application ?Digital Everywhere.? This studio-agnostic application will be the ultimate destination for consumers to organize and access their entire digital library from anywhere on the device of their choice, as well as to share recommendations and discover new content. The Flixster acquisition and ?Digital Everywhere,? combined with the Studio?s support of the UltraViolet format are all part of an overall strategy to give consumers even more freedom, utility and value for their digital purchases.