Acquiring StumbleUpon for $75 million seemed like a good idea to eBay in 2007. Just one year earlier, it had launched other community-driven features including blogs and a wiki. But 2 years later under a new CEO, eBay has returned the company to its original investors and founders. In a press release issued by StumbleUpon, which omitted the terms of the divestiture, the company said there were few long-term synergies between the two businesses.
eBay CEO John Donahoe has said the same of Skype, leading to further speculation about an impending Skype sale. In recent presentations to analysts, he has promoted PayPal as the shining star of eBay Inc.'s portfolio. In his first year as CEO, he has cut back and consolidated operations.
StumbleUpon is described as giving people a new way to discover relevant and entertaining content based on personal preferences and community recommendations. The company is now backed by the original company founders, Garrett Camp and Geoff Smith, as well as a number of well-known investors including Ram Shriram of Sherpalo Ventures, Accel Partners, and August Capital. Camp takes on the role of CEO of StumbleUpon. StumbleUpon has over 7.4 million users, and over 20,000 advertisers use the site to promote products and services.
