Ebay Acquires StumbleUpon | Is this good or bad?

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I heard news of this a few months ago and I was up in arms about it then. Since it became a reality, nothing has changed. And I have a few reasons of my own as to why eBay purchased StumbleUpon.

On May 30th, the announcement that eBay was acquiring StumbleUpon for a reported $75 million turned from speculation to reality. According to TechCrunch, they say that StumbleUpon “currently has over 2.3 million registered users, serve 5 million daily recommendations, and are experiencing a 150% year over year growth rate.” These are some amazing numbers and makes StumbleUpon ripe for acquisition.

However, why eBay? They are an auction based service and my concern is that eBay could possibly change the way StumbleUpon works in order to bring more conversions, sales, members and exposure to its site which could hinder the way users currently interact on StumbleUpon.

Find out a little more about the start of the eBay/SU synergy by checking out the mashable post on this acquisition. I have re-posted some of the images they used that reflect the begining synergy.

    eBay-branded StumbleUpon Homepage

In 2005, eBay also acquired the VOIP service called Skype. They purchased this service for around $2.6 billion as reported on the Skype website. I have not seen much done with Skype since the buyout, but what I do see is a growing virtual real estate being built by eBay.

With how much eBay spends in Pay Per Click, I would not be suprised if they tried to find their way into acquiring a search engine. According to spyfu, eBay is spending about half a million dollars a day just in PPC ads. The purchase of a search engine makes since to me. Maybe they will acquire Local.com next?

In terms of StumbleUpon, some of my ideas that I feel eBay will soon implement into are as follows:

1. The ability to Stumble Thru eBay
2. Integration of Skype into SU toolbar
3. Integration of eBay into SU toolbar
4. It may become possible to join the functionality of SU into the bidding on products under eBay.
5. The integration of a full tilt social networking service that involves the words largest ecommerce auction site, social networking and VOIP seemlessly integrated into one.

What does everyone else think of the buyout? I would love to hear what you all have to say about the future of SU!

About the Author

Joe Whyte has been developing, managing and implementing successful, innovative, bleeding edge digital marketing strategies for Fortune 500 companies for over 7 years.

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One Comment

  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.