Several sources close to InterActiveCorp (IAC) have told CNET News.com that, contrary to rumors, the media conglomerate is not purchasing youth-oriented social-networking site MyYearbook. The rumor was originally reported by Valleywag on Wednesday.
The misconception arose, one source said, because MyYearbook was one of multiple start-ups that were invited to do "mock pitches" to IAC chairman and CEO Barry Diller as part of a session at this week's exclusive Quadrangle conference (hosted by the eponymous private equity firm) at the Pierre Hotel in Manhattan. Essentially, it was like moot court for entrepreneurs.
MyYearbook was founded by a pair of teenage siblings from New Jersey while on their spring break in 2005, and has since raised $4.1 million in venture capital from U.S. Venture Partners and First Round Capital. Representatives from the social network did not respond to a request for comment.
An additional source within an IAC-owned brand, when asked about the possible acquisition, was unfamiliar with any such deal. And indeed, the timing would be rather awkward--in an attempt to refocus its sprawling array of media, e-commerce, and retail brands, IAC announced on Monday that it would be splitting into five separate publicly traded companies. The core IAC company will now consist primarily of advertising-supported online media brands.
Bolt.com, best known as a video sharing site that didn't really catch on, has filed for bankruptcy and shut down. The site had been in acquisition talks with GoFish, which would have been able to cover the $10 million settlement in a copyright infringement case with Universal Music. Earlier this month, the acquisition fell through, and Bolt was essentially doomed.
But it was really MySpace, not YouTube or copyright woes, that struck the first blow to Bolt. Before it shifted its focus to video, Bolt was a teen-oriented social networking site in the days when Facebook founder Mark Zuckerberg was probably getting beat up on a playground somewhere. You could create a profile, talk with other members in chat rooms and message boards (this was the pre-webcam era), and engage in other forms of 1998-vintage "interactivity," like online quizzes and polls.
Bolt circa 2001, thanks to the Internet Archive.
(Credit: The Internet Archive)I was a teen in the '90s and had a Bolt profile out of curiosity, but those were the days when Internet social networking was still a very restricted phenomenon for a number of reasons: first, it was still seen as "weird" (and from parents' perspectives, dangerous) for teenagers to be socializing online rather than in real life; and second, AOL was still a juggernaut in those days. Its chat rooms and message boards, not to mention Instant Messenger, were the go-to place for kids who didn't feel like doing their homework. Then there was the fact that chatting and message board posting was, thanks to the limitations of dial-up connections, more or less all you could do. The infectious draw of viral videos and streaming music was still out of reach for many.
The critical mass wasn't there, so there was no real bandwagon effect to help Bolt grow. Then MySpace came along with its originally music-focused model--if My Chemical Romance has a social networking profile, it can't be just for losers, right?--and online social networking lost much of its "a/s/l?" stigma (that's "age/sex/location," one of the Web's oldest pickup lines, for you newbies). Bolt probably could've found some way to "evolve" and get the word out, but it didn't--the video-site makeover flopped amid the current glut of YouTube clones.
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