eBay Acquires E-commerce Startup, Magento
eBay announced on Monday that it has agreed to overtake Magento (an open source e-commerce platform), an LA-based company with nearly 300 employees. eBay before only had a minority stake in the company, but has since then decided to go big or go home. Neither company stated how much the deal will go for, but it is expected to close in the third quarter of this year upon approval.
Magento offers tens of thousands of merchants control over the user experience, catalog, content, and functionality of their online store. The company’s “Go” platform offers a software-as-a-service (SaaS), offering both small and growing merchants the online tools they need, from payments to inventory management.
Many analysts believe that the move sparks a growing interest for eBay to compete ever so better with Amazon. I’ve always thought that it is not the type of startup that a giant company acquires but how the giant company plans on strategically using the startup. We’ll see if eBay has what it takes to go head to head with Amazon, and if they are able to rid their Nigerian scammers once and for all. Take a look at the video below to hear Magento’s take on how the deal came about.