Back in September, Xmarks closed their doors for what they thought would be the last time. However, a huge public outcry forced them to quickly open for business once again in an effort to keep the service running. Their large group of active users were passionate about keeping their beloved social bookmarking and browser synchronization service afloat.
The startup had multiple offers to keep the operation running, as well as pledges from almost 30,000 fans willing to pay $10 to $20 a year for a new “freemium” model. LastPass, an online password manager and form filler, has stepped up to the plate and bought out Xmarks with the plan to keep it operational. CEO Joe Siegrist said in an interview that he wanted to keep the service operational and provide it with an ongoing business model.
“They had a large dedicated audience, but their free offering and advertising model was not working,” he said. “We really want to figure something out that could keep it going. Siegrist said Xmarks offered a good free service, but relied on a small group of users who pay to upgrade to a premium offering.
Neither company has commented as to the valuation of the deal. However, those of you who are rabid Xmarks fans will likely all agree that it is quite priceless.