Shutterfly Acquires Tiny Pictures For $1.3 Million—Investors Take A Loss
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Online photo printing and sharing service Shutterfly has acquired mobile app developer Tiny Pictures. The deal, first reported by TechCrunch, calls for Shutterfly to pay $1.3 million in cash for the company and another $1.3 million in restricted stock to employees, which is contingent on certain performance targets. It’s a pretty good deal for Redwood City, CA-based Shutterfly. The same can’t be said for the backers of San Francisco’s Tiny Pictures, which has raised $11.2 million since opening its doors four years ago.
SEE ALSO: Shutterfly Buys Group Sharing Site Nexo For Less Than $15 Million
Tiny Pictures raised $7.2 million in February 2008 in a second round led by Draper Fisher Jurvetson; investors in its $4 million first round included Reid Hoffman, Joi Ito and Mohr Davidow Ventures, which held preferred shares. MDV was identified in an SEC filing as getting part of the proceeds. Nancy Schoendorf, a managing partner of MDV, sits on both boards but was not part of negotiations, according to the filing.
Shutterfly gains expanded mobile services. Tiny Pictures runs a site called Radar.net, which allows for mobile sharing and is integrated with Twitter, Facebook, Flickr and other social networks. In January 2008, Shutterfly bought online groups and personal publishing service Nexo Systems for under $15 million in cash and stock.
Posted In: Mobile, Money, M&A & Venture Capital, Mergers & Acquisitions, Social Media, Photo Sharing, shutterfly, tiny pictures
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