The digital scrapbooking space is competitive with Flickr, Apple's iPhoto and other popular photo sharing sites offering high-end scrap booking options for consumers. Which is why smaller startups are dropping like flies, either heading to the deadpool or via acquisitions. Last year digital scrapbooking startup ScrapHD was bought by craft store chain Michaels. And today, Scrapblog, a startup that lets you build rich Flash-based online scrapbooks is being acquired by competitor Mixbook. Terms of the deal are not disclosed. This actually a positive exit for a company that seemed to be in trouble. As of last fall, Scrapblog's traffic was minimal, only receiving 84,000 unique visitors in September. And we received a number of reports that Scrapblog was forced to layoff employees last year.