Plaxo For Sale. More to come?
Plaxo appears to be up for sale according to Techcrunch and the New York Times. Originally an online address book service, Plaxo morphed into a meta-social network in the last year with their Pulse product. Their network address book has approximately 20 million registered users and appears to be growing fast. But why sell then? Is it because Plaxo has discovered that building a strong revenue model around a social network can be a challenge? They are apparently expecting as much as $100 million for the sale. Approximately, $30 million has been raised for the business so far.
We're all suffering from social network fatigue. I liken it to car purchases. At the end of the day, you can only drive one car at a time. You may have two or three but one will be your primary vehicle. The same applies to social networks. And Plaxo competes directly with LinkedIn and to a lesser extent with Facebook and the upcoming Google Social Networking service. Either Pulse is not doing as well as they hoped or Google and LinkedIn are worrying them.
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