Investors buy back StumbleUpon from eBay

Both companies say there were no synergies between the companies following eBay's $75 million buyout in 2007.

The founders of Web recommendation site StumbleUpon have bought it back from eBay, making the company independent again after nearly two years.

StumbleUpon, founded in 2001, is designed to send its users to Web sites based on recommendations by other users. The recommendations are available on the Web and through a free toolbar. EBay acquired the company in 2007 for US$75 million. However, like Skype, StumbleUpon hasn't been significantly integrated into eBay's services.

Cofounders Garrett Camp and Geoff Smith have acquired the company along with Sherpalo Ventures, Accel Partners and August Capital. The price was not disclosed.

Top executives at eBay, including then-President and CEO Meg Whitman, were excited about what StumbleUpon was doing, said Camp, who will now be CEO of StumbleUpon.

"It was a pretty lucrative offer, because nothing really changed," Camp said. The startup remained at its offices in downtown San Francisco, where it still operates, and got a valuable infusion of capital. But ultimately, eBay couldn't find a way to integrate StumbleUpon into the larger business, he said.

"As eBay Inc. expands its leadership in online payments and e-commerce, it has become apparent that there are few long-term, strategic synergies between StumbleUpon and the eBay Inc. portfolio," eBay said on its official blog.

Going back to independence will give StumbleUpon more flexibility in small ways, such as hiring, Camp said. The company plans to make its service more accessible and increase the quality of its recommendations. There are plans for several new products and features to be released in the coming months, the company said. Its workforce of about 30 will remain the same, Camp said.

The new ownership puts StumbleUpon in good company. Sherpalo Ventures founder Ram Shriram is on Google's board, and Accel Partners was one of the original funders of Facebook.

While it was owned by eBay, StumbleUpon grew from 2.3 million to more than 7.4 million members, and from about 150 million recommendations per month to 425 million. In the same period, the number of advertisers grew from a few hundred to about 20,000, Camp said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ebaystumbleupon

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?