Is this acquisition beneficial for both “EBay” and “Magento“? Will this move open implausible opportunities for the entire Magento ecosystem? No one knows, what happens next!
On Monday 6thJune 2011 EBay announced that it has agreed to acquire Magento, an experienced player from ecommerce industry. The foremost reason behind this acquisition is that it helps EBay in enhancing its tools for online store developers so that they can drive innovation. However this is not all, the focus of this strategy is that EBay is creating a global, open commerce platform i.e. “X.Commerce” for leveraging the worldwide developer community and that too with the help of Magento.
This acquisition helps both EBay and Magento, EBay is benefited in such a way that it is expecting hasten innovation in EBay Inc.’s X.Commerce Platform and Magento gains advantage in a way that it become a strategic component within EBay Inc.’s X.Commerce Platform.
On the Magento’s Blog, Roy Rubin, CEO and co-founder of Magento posted about the sale that “it’s too soon to know all the details” but following the close of the sale, “Magento will continue to operate out of Los Angeles, with Yoav Kutner and me as its leaders.” He also said that “We’ll continue building our team and enhancing our product line, including the Magento Community, Enterprise, and Mobile Editions, as well as Magento Go and the Magento Go Platform.”
Magento also prepared a FAQ page for its customers, so that they can have answers to many of their questions about this acquisition announcement. And according to EBay, this move is quite interesting, especially in relation with PayPal and X initiatives. Magento is the possibility for EBay to offer large and small businesses a whole range of ecommerce solutions, from hosting to payment processing from mobile.