Xmarks acquired by LastPass, Goes Freemium

The Xmarks cross-browser bookmark synchronization service nearly had to shut down earlier this year because the company was running out of funding and still hadn't found a sustainable business model.

LastPass, a software company that offers a cross-platform password synchronization tool, has acquired Xmarks and is moving the product to a freemium model.

Xmarks users who are willing to pay $12 a year for the new premium version of the service will get extra features, including access to the new Android and iPhone mobile applications.

Xmarks has more than 4.5 million users syncing more than 1 billion bookmarks across five million computers. LastPass thinks the new "freemium" model will work because it did for LastPass.

Hands-on: Xmarks acquired by LastPass, launches mobile apps