Magento eCommerce Stores Got Funded by eBay

Magento eCommerce Stores Got Funded by eBay

This took place 4 years ago, but no one knew about it. eBay stuck money in the platform but never made it public. Does it matter??? As an eBay seller? Hell no, not to me!

But I guess if you are an investor in eBay, then it would look good on paper :-)

Amplify’d from

EBay Inc. revealed yesterday that it owns a 49% stake in Magento Inc., an e-commerce platform provider that focuses on small to mid-sized e-retailers. The online marketplace made the $22.5 million investment in March, but Magento’s filings at the time with the U.S. Securities and Exchange Commission did not reveal the investor.

Magento controls the remaining 51% of the company, says Magento co-founder and CEO Roy Rubin. The technology provider does not plan to seek further investment. “We have enough working capital to pursue what we are doing and execute on our mission,” he tells Internet Retailer.

Rubin says eBay’s investment in Magento wasn’t formally announced last year because neither party thought it was necessary to do so as Magento’s operations would remain mostly independent from eBay. “I think it was more that we wanted to control our own destiny,” Rubin says. “EBay is comfortable standing at our sidelines and watching us grow.”

Magento integrates PayPal, eBay’s payment services unit, into its open-source e-commerce platforms as a payment option for online retailers. It is one of multiple forms of payment that e-retailers can choose to accept within the Magento framework, and Rubin says that eBay’s stake in the company will not change that. None of Magento’s e-commerce platforms currently integrate with eBay’s marketplace.





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