LastPass, a cross-platform password manager, has acquired the social bookmarking and browser synchronization service Xmarks.

The San Francisco-based Xmarks has been in the midst of some tumult of late, as it closed down in September and then quickly opened back up again in an effort to keep its service running for a large group of active users.

That happened after user outcry, spurring the company to try to stay afloat.

SInce then, Xmarks has been trying to land itself safely.

The start-up had multiple offers to keep the operation running, as well as pledges from almost 30,000 fans willing to pay $10 to $20 a year for a new “freemium” business model.

Enter LastPass, based in Vienna, Va., whose CEO Joe Siegrist said in an interview that he wanted to help keep the service operating.

“They had a large dedicated audience, but their free offering and advertising model was not working,” he said. “We really want to figure something out that could keep it going.”

Siegrist said LastPass offered a robust free service, but relied on a small group of users who pay to upgrade to a premium offering.

The browser add-on for cross-platform synchronization operates in the cloud.

And that is going to be the fate of Xmarks–which had been called Foxmarks initially.

It had been seed-funded in 2006 by well-known entrepreneur Mitch Kapor and also got an additional investment from First Round Capital.

Xmarks garnered another $5 million in funding from Redpoint Ventures in 2008,

That year, it also hired Silicon Valley entrepreneur James Joaquin as CEO, whose job it was to carve out a business with Xmarks’ assets, including using its mass of data.

Xmarks had certainly been growing its user base and bookmarked Web addresses strongly, via a browser widget that recorded bookmarking information.

Earlier this year, it tried out an advertising product called SearchBoost, which gave advertisers additional analytics about their ads, as well as organic search results.

But all that ultimately did not translate into a viable business for Xmarks.

“We think this will make a great ending and beginning for Xmarks,” said Joaquin.

Both Xmarks and LastPass declined to provide financial details of the transaction.

Here is the blog post by LastPass and Xmarks about the integration:

Today we’re excited to announce that Xmarks has been acquired by LastPass, makers of a leading cross-platform password manager. It’s a great opportunity that ensures the survival of Xmarks as the same service that you know and love.

In the last few years, we’ve attracted over 4.5 million users syncing more than 1 billion bookmarks across 5 million computers. Most importantly, we’ve provided a simple solution to help people easily access their bookmarks, wherever and whenever they needed to. We’ve had thousands of users tell us that Xmarks has become an integral part of their browsing experience. You can rest assured that LastPass will continue to build upon the service in the coming months.

We’re also committed to keeping Xmarks free while implementing a viable long-term plan. Xmarks is transitioning to a “freemium” business model, the same model that allowed LastPass to grow into a thriving, profitable business. The browser add-on and the vast majority of what users have enjoyed remains free. Users can then opt to purchase Xmarks Premium for $12 per year, which includes new enhanced features like Android and iPhone mobile phone apps, priority support, and more. The Xmarks and LastPass Premium offerings are also available bundled together at a reduced subscription rate of $20 per year. For those of you who pledged your financial support, you can make good on your pledge today and upgrade.

The restructuring of the Xmarks offerings will accelerate the introduction of new features and service improvements. The two services will continue to require separate downloads and will be administered through two distinct extensions and websites, although there are plans to integrate them in the future.

We believe the acquisition will prove to be a success because of the common mission shared by LastPass and Xmarks. Xmarks complements LastPass’ vision of secure, universal access to the information that gives you entry to your digital life. By joining LastPass, Xmarks will also be able to accelerate the introduction of new features and developments. As the ultimate cross-browser, cross-platform team, Xmarks and LastPass will work together to help more people simplify their digital lives and access their data from anywhere, at any time.

We’re excited to join forces with LastPass and be a part of a team that will continue to provide the best data-syncing tools out there! We hope you will support both of these great services through your business and your Premium subscription. For more information, please see the FAQs.

The Xmarks & LastPass Teams

Yesterday marked the end for Xmarks, the Mitch Kapor-backed social bookmarking start-up that was founded in 2006.

What was most remarkable to BoomTown was the classiness and honesty of the goodbye, especially in Silicon Valley, which is loath to call a failure just that.

That was certainly clear in a terrific blog post about its history, titled “End of the Road for Xmarks,” written by its CTO and co-founder Todd Agulnick.

After noting Xmarks’ substantive growth as a browser synchronization service, he wrote:

“Tomorrow, however, will hardly be anything but typical, for tomorrow one of our engineers will start a script that will email each of our users to notify them that we’ll be ceasing operations in around 90 days.”

In the fascinating post, Agulnick did note that the company came close to selling recently. Actually, I heard it had gotten close twice and to no avail.

The San Francisco-based company–which had been called Foxmarks initially–had been seed-funded by Kapor, the well-known tech entrepreneur, and also got an additional investment from First Round Capital.

Xmarks garnered another $5 million in funding from Redpoint Ventures in 2008,

That year, it also hired Silicon Valley entrepreneur James Joaquin as CEO, whose job it was to carve out a business with Xmarks’ assets, including using its mass of data.

Xmarks had certainly been growing its user base and bookmarked Web addresses strongly, via a browser widget that recorded bookmarking information.

Earlier this year, it tried out an advertising product called SearchBoost, which gave advertisers additional analytics about their ads, as well as organic search results.

But all that ultimately did not translate into a viable business model for Xmarks.

At the time of launching this money-making effort in April, Kapor said that after growing its user base of actives, this was the next logical step for Xmarks.

“This is the effort to move from that category to the category of sustainable enterprises,” he said. “And that is certainly a good thing.”

But, as Agulnick concluded:

“We built it and it put it front of potential advertisers. Many were interested, but ultimately the feedback was negative: our user base was too small to be worth their time and attention.”

After thanking investors, employees, users and others, Agulnick ended:

“In the words of Douglas Adams, so long and thanks for all the fish.”

Indeed.

Looking back to happier times, here is a video interview I did with Joaquin in late 2008 about Xmarks’ prospects:

I have Firefox on my home laptop, but Internet Explorer on my office laptop. Can I transfer my Firefox bookmarks on my home computer to IE on my office computer using the Foxmarks bookmark-synchronization service you recommended? And how would I go about doing it?

Yes. You start by uploading your bookmarks from Firefox at home to your Foxmarks Web account, using the Firefox version of Foxmarks. That will establish the bookmark collection on the Web site as identical to your Firefox collection. Then, you install the IE version of Foxmarks on your office computer, and, when it prompts you to sync, you can either merge the Web-based bookmarks you previously uploaded from Firefox with the ones already on IE, or choose the option to overwrite the IE bookmarks entirely with the ones online.

Does the Foxmarks service work with AOL’s browser bookmarks?

AOL’s browser is not supported. Neither are some other browsers, such as Opera or Google’s Chrome. Foxmarks currently comes in versions only for Internet Explorer, Firefox and Safari (Mac version only). The Firefox version also works with Flock, which is a browser heavily based on Firefox.

Do you have any idea what the realistic hardware requirements will be to run Windows 7?

Microsoft hasn’t announced these yet. But the requirements for the current beta version are likely to be similar to those for the final release. The beta hardware requirements are: a 1 GHz 32-bit or 64-bit processor; 1 GB of system memory; 16 GB of available disk space; support for DirectX 9 graphics with 128 MB memory available for graphics; and a DVD-R/W Drive.

In the past, Microsoft’s minimum requirements have tended to understate what’s needed to run Windows well, even when doing typical tasks. It’s too early to say if this will be true of Windows 7. But I can say that, in my testing so far, the beta of Windows 7 runs much more quickly and smoothly than Vista on the same hardware.

• You can find Mossberg’s Mailbox, and my other columns, online free of charge at the new All Things Digital Web site, http://walt.allthingsd.com.

While at the TED conference last week, I asked a variety of people in attendance at the elite gathering which presentation had blown their head off. Figuratively, of course!

TED–for Technology, Entertainment and Design–had an eclectic range of speakers and tony digerati parties at its new location in Long Beach, Calif.

Onstage, there were a lot of talks about the awful state of the earth at TED, which sometimes feels like a four-year college in four days.

But there were also less-dire presentations, like the one from “Eat, Pray, Love” hit author Elizabeth Gilbert about genius, and another on how Brad Pitt’s head and range of facial expressions are now stored in a studio database for all eternity (as part of his work on the movie, “The Curious Case of Benjamin Button”).

That’s a cold comfort amid all the global melting down, but BoomTown will not refuse it.

I also got reaction from some other TED attendees to the event. Included in the video are: Reid Hoffman of LinkedIn, Foxmarks’ James Joaquin, Craig Donato of Oodle, Mozilla’s John Lilly, VC Dave Hornik, Steven Levy of Wired, entrepreneur Bill Gross (showing off a future car) and techie Linda Stone.

Here’s the video:

And here is a video of my tour of TED action.

BoomTown provided continuing coverage of the Yahoo (YHOO) merry-go-round. This time, PR head Jill Nash announced her departure. As the company’s chief communications officer, she’s had a challenging two-year run. New CEO Carol Bartz definitely has some PR ideas of her own, including offering cash prizes to employees who provide info on their colleagues who leak information to the press. Not a huge deterrent yet, apparently–it didn’t take long for BoomTown to get info on both Nash’s farewell memo and Bartz’s bounty system. Next, New Networks, the publisher behind BarelyPolitical and its hugely viral Obama Girl videos, has widened its purview to include the tech sector with BarelyDigital, which the online network has envisioned to include regular shows, tech news remixes and the like. It’s rumored that Obama Girl will be making a cameo appearance or two. If the first two features are any indication, the future looks pretty funny. In another round of executive musical chairs, Time Warner’s (TWX) AOL ad head Lynda Clarizio will be leaving the online service, to be replaced by former Yahoo ad exec Greg Coleman. Microsoft (MSFT) is launching a slick new celebrity site on MSN called Wonderwall, created, designed and produced by BermanBraun Interactive, a Hollywood company run by former Yahoo media chief Lloyd Braun. And speaking of musical chairs, MSN is clearly upping its content ante–earlier this week, it hired Yahoo’s recent media head Scott Moore, who used to work at Microsoft.

MediaMemo asked: What happens when one of the world’s richest men lets loose a swarm (a small swarm) of mosquitoes at a high-end conference? Nothing too exciting, really, but when you consider that the stunt was the publicity-generating part of Bill Gates’s talk at TED, which was a discussion of malaria and some of the problems the Bill and Melinda Gates Foundation is facing head-on, it gets pretty compelling. Kindle 2.0, the new generation of the device dubbed the “iPod of the book world” will be unveiled Monday at a New York press event, but how many of the devices have been sold thus far? Amazon’s (AMZN) not telling, but Citigroup analyst Mark Mahaney estimates the number at 500,000–and believes that the Kindle will be a $1.2 billion business next year. Obviously, a lot will depend on Monday and the new device’s reception. MediaMemo also took some time out this week to wish Facebook a happy fifth birthday, and to stack its track record next to Google’s at the same age, with interesting results. Even the pros are getting hit hard these days–in its quarterly earnings report this week, News Corp. (NWS) missed its estimates, recorded an $8.4 billion write-off and lowered its guidance. CEO Rupert Murdoch admitted that the downturn is worse than he thought. He also admitted that he spent $2.8 billion too much for Dow Jones. (News Corp. is the owner of Dow Jones and this Web site.)

Digital Daily followed the trial of four Google executives this week on criminal charges of defamation and breach of privacy after a much-publicized two-year investigation. Google (GOOG) insists the charges are unwarranted and “akin to prosecuting mail service employees for hate speech letters sent in the post.” Clearly, the ultimate outcome will have a huge impact on the future of a free, open Internet. MySpace said this week that it has identified and ousted 90,000 registered sex offenders–and those are just the ones brilliant enough to use their real names. There’s no way of knowing how many are actually using the service or how to prevent them from re-registering once they’re deleted. A free an open Internet, indeed. DD also pondered the future (or lack thereof) of the Motorola (MOT) handset division. Co-CEO Sanjay Jha says the company is committed to making the business work, but its products are looking boring and outdated, and a turnaround would be prohibitively expensive to execute. In the words of one analyst, the company’s problems are “gruesome.” On the other end of the spectrum, Microsoft continues to vehemently deny reports that it’ll be producing its own smartphone. In a report this week, analysts from Broadpoint.AmTech speculated that the device could be uncrated later this month at the Mobile World Congress in Barcelona. Meanwhile, it’s been up in the air for two years whether or not iPhones will ever be uncrated in historic Georgetown. Apple (AAPL) has been around the table a few times now with preservationists wary of the architectural impact of an Apple store, no matter how much the business traffic is needed in the neighborhood. Looks like perseverance may have finally paid off, though–Georgetown’s Apple store could open later this year.

In Personal Technology this week, Walt Mossberg took a look at a program called Foxmarks, which sets out to synchronize bookmarks among all of your browsers and all of your machines. Sound a little too handy to actually work well? Walt found it does a pretty good job, with a few caveats. In Mossberg’s Mailbox, Walt responds to readers who want to know more about doing “techie” maintenance on their PCs to keep them running well, whether or not to buy a 15-inch MacBook Pro, and options for email within Windows 7, which won’t ship with a built-in email program. In the Mossberg Solution, Katherine Boehret tests Google Latitude, an opt-in program that lets users track one another’s movements on their smartphones using GPS, Wi-Fi, and cell towers. Kind of like Gawker Stalker, only with permission and without Lindsay Lohan (unless you happen to be Lindsay Lohan).

Last but not least, Silicon Valley lost one of its own this week. The widely admired and much loved Mike Homer, whose rare, severe illness was a rallying point for many over the past months, passed away last weekend and was laid to rest on Thursday.

More next week.