Sorry, nothing in cart.
In March 2010 Magento announced that they have received sizable investment but kept the investor name secret. On Thursday eBay has revealed that they own 49% stake in Magento. Now, it’s officially confirmed that eBay owns 49% of Magento Inc.
You might think that what does eBay have to do with Magento but the fact is eBay knows that normal retailers in the coming years will not only sell on eBay but use their own ecommerce versions i.e. Magento. eBay has cemented it’s place by owning Magento which is prominent ecommerce platform.
EBay Inc. chief technology officer Mark Carges said that the investment helps eBay position itself as a resource for e-retailers, whether they conduct business on eBay.com or elsewhere. “Combined with the power of our platform innovations, we can offer retailers an unmatched advantage as an e-commerce partner,” Carges said. “We view our platform assets as enablers, not just for our business but for other retailers.”
Magento founder Roy Rubin says that eBay’s investment in Magento is primarily about PayPal. PayPal saw that an open platform could help it grow its business, and this is what sparked PayPal’s interest in Magento, which has a large developer community (open-source means third-party developers can provide new functionality to the software, which they can charge for, or offer to users for free).
eBay’s partial ownership in Magento gives PayPal entree to a large base of third-party ecommerce developers. PayPal had a big presence at Magento’s conference last week, and Naveed Anwar, Senior Director of Pay Pal X Developer Network, was one of the keynote speakers.
Announcement of Magento Go Platform, which will allow developers to innovate and build applications for the Magento Go hosted solution cements what’s going on. The Magento Go Platform will feature a range of APIs that will expose all of Magento’s functionality, both front-end and back-end, to developers.
Although, it would be so early to say that eBay could promote Magento to its mid-sized sellers who are looking to build their own website, but I suspect there is a piece of the puzzle we’re not yet seeing when it comes to eBay’s latest investment.
So, what do you think about eBay’s investment in Magento Inc. please leave me a comment and let me know. Subscribe our RSS to receive latest Magento updates, news.