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I would guess that technology caught up with them.

With the penetration of smartphones, I bet that that's become a better alternative than web IM for most people.

Exactly. Too focused on having a unified IM network for the desktop web. Facebook chat took over desktop web chat. Whatsapp took over mobile app chat. And Meebo got into toolbars and sharing widgets. Their lack of product focus and subsequent sale reminds me a lot of Loopt.

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