Monday, April 13, 2009

EBAY Dumps StumbleUpon (Finally)

. Monday, April 13, 2009

By stockOzone team

The eBay (NASDAQ: eBAY) and StumbleUpon formally parted ways on Monday after the social networking site's founders, Garrett Camp and Geoff Smith, said they bought back the company with a group of investors, including Accel Partners and August Capital.

In a statement eBay spokesman Usher Lieberman said"We didn't find synergies with the eBay portfolio."

“We’re really more focused on discovery and content. We realized it was best if we parted ways and did our own thing.” StumbleUpon founder Garrett Camp said.

However, eBay refused to disclose the price of the deal. Founded in 2001, StumbleUpon, was acquired by eBay two years ago for $75 million.

StumbleUpon has currently has around to 7.5 million registered users, up from 2.5 million when eBay bought it in 2007. The service currently has 425 million “stumbles,” or collaborative recommendations made to Web browsers moseying around the site.

Meanwhile, it is also being rumored that the online auctioneer is planning to put Skype, the online calling service it bought in 2005 for $2.5 billion, on the block. In Mar. 11 presentations for Wall Street analysts and investors at the company's San Jose (Calif.) headquarters, eBay chief executive John Donahoe admitted that the company was "wrong" in assuming that Skype would "enhance communication between buyers and sellers and reduce friction in the eBay marketplace and payments.

Shares of eBay fell 39 cents or 2.60% to $14.63 in regular trade on Monday.

Disclosure: Author does not own any of the stocks discussed here.

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