Shutterfly Snaps Up Nexo
A three-month view of Shutterfly’s stock is fairly grim – it’s made its way from $35 per share to $20.75 in a direct fashion. The company’s market cap is still $511 million, however, and Shutterfly has just flexed a small amount of muscle by buying Nexo.
Nexo describes itself as an "on-line sharing and group services company," and according to an official release, was sold for "less than $15 million." Hurray for vague writing, huh?
Nexo’s technology should enhance Shutterfly’s photo-sharing abilities, however, and will, if everything goes as planned, impress current users and convince more people to join the fun. We’re not calling the Nexo acquisition a miracle cure – relevant Google results are rare, and the company doesn’t even have a Wikipedia entry – but this is Shutterfly’s line of thought.
Jeffrey Housenbold, the president and CEO of Shutterfly, stated, "The acquisition of Nexo accelerates our next-generation sharing platform and enhances Shutterfly’s market leading position and consumer value proposition." Also, "Nexo’s talented development team has deep experience with Web 2.0 technologies and services."
The stock market should open in a few more minutes, so we’ll soon see if investors agree with that assessment.