Online video marketplace Shopflick bought by Sugar Inc.

Sugar Inc., the San Francisco-based blog and media network, announced a $16 million third round of funding from Sequoia Capital, which it will use in part to purchase online video fashion marketplace Shopflick for an undisclosed amount. Shopflick, which drew down $7 million in venture capital in 2008, lets independent clothing and jewelry sellers tell a personalized video story about their products to engage their target audience.

David Grant, CEO of Shopflick and former president of Fox TV Studios, will now serve as president of Sugar Digital Entertainment through the deal, which will expand Sugar's network into online video and other content formats.

Not only is the Shopflick acquisition the first one in quite a while where a company has been purchased to help build out an online video presence for another media firm, but it's only the second pure online video exit of 2009 thus far. The CDNetworks and Panther Express deal, though an acquisition for all intents and purposes, was cast as a merger. 

For more:
- see this TechCrunch article here 

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