StumbleUpon's founders buy service back from eBay

April 14, 2009

(AP) -- Two founders of Web content recommendation service StumbleUpon said Monday they bought the company back from online auction house eBay Inc., just two years after eBay purchased the startup for $75 million.

The founders, Garrett Camp and Geoff Smith, bought the company back with the help of investors including Ram Shriram of Sherpalo Ventures, Accel Partners, and August Capital, they said. Financial terms were not disclosed.

Camp will be chief executive of the company.

"We realized there were few long-term synergies between the two businesses," Camp said in a release. "It is best for us to part ways and focus on our respective strengths."

StumbleUpon, founded in 2001, has more than 7.4 million users and issues 425 million recommendations per month. The company suggests Web sites based on reader reviews and personal preferences of its members.

When purchased the company two years ago, the startup was considered a pioneer of the so-called "Web 3.0" niche. The term refers to technology which pairs up general capability with a user's personal data and aggregated community data, in an effort to deliver more relevant results than a standard search engine such as Inc.

But San Jose, Calif.-based eBay itself has stumbled, acknowledging last month that it still has a long way to go in improving its online marketplace. Chief Executive John Donahoe, echoing investors, said at the time that the marketplace business has not kept up with the changing competitive landscape and customers' needs.

Ebay shares fell 39 cents, or 2.6 percent, to close at $14.63 on Monday. Shares gained 25 cents to $14.88 in after-hours electronic trade.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: StumbleUpon, eBay Call Merger 'Talk Rumors'

Related Stories

StumbleUpon, eBay Call Merger 'Talk Rumors'

April 20, 2007

Both StumbleUpon and eBay on Thursday shot down reports that the e-commerce giant plans to acquire StumbleUpon, but refused further comment on merger talks. Meanwhile, Google launched its own StumbleUpon-like feature, an ...

EBay's PayPal envisions doubling in size by 2011

March 11, 2009

(AP) -- EBay Inc.'s name may conjure images of online auctions, but the company is hoping to turn attention to its second-largest business - PayPal - which it expects to blossom significantly in the next few years.

EBay admits more work ahead for marketplaces unit

March 12, 2009

(AP) -- EBay Inc. has been struggling to improve its online marketplace, and the company acknowledged Wednesday that it still has a long way to go. But eBay also highlighted the strength of its PayPal unit, predicting its ...

Skype founders looking to buy back company

April 11, 2009

The two founders of Skype are seeking to buy back the hugely popular Internet telephone service that they sold to online auction giant eBay in 2005, according to US media reports.

Recommended for you

For these 'cyborgs', keys are so yesterday

September 4, 2015

Punching in security codes to deactivate the alarm at his store became a thing of the past for Jowan Oesterlund when he implanted a chip into his hand about 18 months ago.

How to curb emissions? Put a price on carbon

September 3, 2015

Literally putting a price on carbon pollution and other greenhouse gasses is the best approach for nurturing the rapid growth of renewable energy and reducing emissions.

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

1 comment

Adjust slider to filter visible comments by rank

Display comments: newest first

mongander
not rated yet Apr 14, 2009
I'm old and definitely not geeky but I do make quite a few internet purchases...3 to 6 per month. Ebay is the only site that I have never been able to navigate a purchase on. I can't log on and I can't register. I'm happy that ebay is sinking.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.