Snapfish Acquired Again – This time by HP
OK, so the a:c was caught flat-footed by the news that HP acquired 80-person San Francisco start-up Snapfish, but we think that’s because nobody could get excited enough to leak the story. The terms of the deal are not disclosed at this time, but we expect it is a very nice windfall for the owner of Snapfish – District Photo – a Washington, DC photomat founded in 1949. District Photo bought Snapfish for a song back when valuations were lousy, but now everyone wants their photo service and there are few significant independents left. Snapfish.com still lists Raj Kapoor as President, but we understand he announced months ago that he was off to Mayfield to become a VC and that the current guy in charge is Ben Nelson.
The move is a typical me-too move by HP. Snapfish has a fair number of users, but it lacks the buzz that Picasa and Flickr had before they were acquired by Google and Yahoo, respectively, as well as the size enjoyed by Shutterfly and Ofoto.