TECHCRUNCH
MICHAEL ARRINGTON
9 APRIL 08
Web chat startup Meebo
has been working with investment bank Montgomery & Co. for the last few months to either find a buyer or raise a big new round of financing. The rumor was they were looking for a $250 million valuation.
A couple of sources have told us that eBay, Fox/MySpace and AOL all took a long look at the company, but ultimately passed based on the price and the fact that the company has done aggregate revenues since launching of only $1 million or so.
So instead of selling, Meebo is closing a financing round valuing the company at $175 - $200 million. The company wants strategic investors as well as the inevitable private equity funds that would be willing to pay this kind of valuation (traditional VCs won’t touch a deal like this). The rumor is that Fox and/or AOL may be investing in the round.