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eBay to announce StumbleUpon buy today

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Update: So, it’s official, eBay has bought StumbleUpon for $75 million. Here’s the release.

eBay, the San Jose, Calif.-based auction giant is likely to announce its acquisition of Stumble Upon after the close to markets today, according to informed sources. The news of a pending deal was first reported back in April 2007. The acquisition price is said to be $75 million. StumbleUpon has raised close to $1.5 million in seed financing

The rationale behind the deal will emerge in time. There have been some who have disagreed with my hypothesis on why eBay wanted to buy StumbleUpon, a social book marking discovery service.

By marrying the toolbar to Skype client, eBay can do an end run around Google’s dominance of the search business. A simple search box inside Skype client is all it would take. It is not that far fetched: Skype has been slowly integrating various different services (including PayPal) into its client, and slowly becoming eBay’s desktop backdoor.

Our readers and others around the web furiously debated this theory, and offered alternative views.

TechCrunch is reporting on the pending announcement as well.


20 Responses to “eBay to announce StumbleUpon buy today”

  1. mehnaz

    Sramana Mitra, writes a series of articles on eBay’s acquisitions.Sramana also analyzes e-bays strategy. Read more eBay’s Forays Into Media.

  2. This deal may actually may make a lot more sense than it seems, even the pricing. The key is looking at it more in terms of marketing contribution (in consideration of what eBay spends) and not as a revenue contributor. Some may agree, or disagree, but I’ve written a detailed look at the valuation on my own site . It’s not really in the markets I tend to cover but those interested can find it here. Kudos to those here who broke the news.