Kaboose’s BubbleShare bursts

TechCrunch is reporting that Toronto-born photo sharing startup BubbleShare will be shuttered on November 15th. Users were notified via email and a notice on the BubbleShare’s homepage.

BubbleShare was launched in 2005 by Albert Lai (now with Kontagent) and in 2007 was sold to family-friendly media company Kaboose Inc. for US $2.25 Million plus up to another US $750,000 based on earn-out provisions.

Last April Toronto-headquartered Kaboose (now KAB Distribution Inc.) announced that it had sold substantially all of its assets to a company controlled by funds managed by Barclays Private Equity Limited and Disney Online for a combined US $120 Million.

The closure of BubbleShare shouldn’t come as much of a surprise. KAB’s financial statements dated June 30, 2009 make it very clear that the recent asset sale “resulted in the Company ceasing substantially all of its operating activities” and that “the main assets of the Company are cash and tax credits receivable and the main liabilities of the Company are termination payments and professional fee accruals to wind up the Company.”

KAB management estimates that a distribution of $0.65 per share will be made in the fall based on a final Canada Revenue Agency audit and the final costs to complete the wind up.

Goodbye BubbleShare.