eBay Purchases 49% Stake in Magento
At today’s eBay Analyst Day, Mark Carges, eBay Senior Vice President Global Products and Chief Technology Officer, announced that eBay has acquired 49% of Magento. This was first covered at AuctionBytes in their coverage of the eBay Analyst Day. Magento joins a large list of companies that eBay has either purchased outright or purchased a stake in, including PayPal, Skype (which they later sold most of their shares of), Craigslist, StubHub and others, most notably, ProStores.
eBay purchased ProStores in 2004 and began offering their own ecommerce stores service (similar to the service Magento provides in their new Magento Go platform) at that time using the technology ProStores had built. In the past, eBay has used the purchase of a minority stake in the company as a way to hedge their bets against a site/service they feel may become a major competitor, and they’ve outright purchased companies that they feel offer complimentary services they can integrate into the core eBay experience (i.e., PayPal, Skype).
So, the big question is what eBay’s plan is with this acquisition of a 49% stake in Magento – if they’re going to be active or passively involved with Magento. Perhaps this means we’ll see eBay/Magento integration in a future release of Magento? Are they planning to purchase Magento outright?
We’ll keep an eye on this – so far only AuctionBytes seems to be covering this announcements, but we expect to hear more from eBay and Magento in the coming weeks.