StumbleUpon's eBay Spinoff Valuation: $29 Million

Earlier this month we reported on eBay’s spinoff of StumbleUpon, a company it owned for a little less than two years. Ebay bought the company for $75 million in May 2007. Unknown until now, though, was the spinoff value of StumbleUpon. According to a source close to the transaction, it was $29 million.

New investors Sherpalo Ventures, Accel Partners, and August Capital joined StumbleUpon founders Garrett Camp and Geoff Smith in purchasing the company back from eBay. Outside investors put in 85% or so of the $29 million, we’ve been told, with Camp and Smith making up the rest.

eBay was paid $25 million in cash for StumbleUpon and retains a 10% interest in the spun off entity. $4 million remains in the company to fund operations.

StumbleUpon’s revenues are estimated at $5 million - $10 million annually.

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Comments

[gordonk:]

Based on ebay Inc's CEO, John Donahoe's total incompetence, StumbleUpon may have a chance for success, IF the new owners boot Donahoe to the curb. He's all but destroyed ebay in his short tenure and no doubt everything he touches turns into manure. My suggestion for the new owners of StumbleUpon is to buy out ebay's 10% interest and cut all ties with the sinking ebay ship. My suggestion to ebay shareholders is for them to can Donahoe's arse. Maybe then, they can finally get a competent leader at the ebay helm, regain the over 50% losses Donahoe orchestrated and then even actually receive dividends from their investments. Otherwise, the ebay shareholders can continue to just stand back and do nothing but wave bye-bye to more of their hard earned money, while Donahoe builds a much bigger golden parachute for himself.

May 01 12:54 PM

[Tony P.:]

from over on The Fool's website...

I heard somebody screaming: "Buy high, sell low" and in a lickity-split moment I just knew ebay was being mentioned.

sho 'nuff

But Hey!! Their stock's still going strong, so what's to complain?! Second straight quarter of losses (worse than the last, actually) and all they needed to do was beat the estimates, to look stellar.

The bar is now set at "non-tank". That's much easier than double-digit growth. JD thanks you all.

May 01 04:10 PM

[gdog:]

Are you kidding me, their worth at least 30 billion.




On May 01 11:25 AM Cetin Hakimoglu wrote:

> Based on the huge growth of stumble upon, market dominance ,and revenue
> potential I give it a valuation of almost 1 billion.

May 02 04:48 AM

[Et tu, Brute!:]

To gdog:

Most of which, is off shore. Along with ALL your personal, unprotected information!

May 03 07:24 PM