Word on the street is that StumbleUpon has signed a term sheet with eBay – indicating that they will be acquired by eBay. The price is rumored to be in the $40 – $45 million range. Not bad for a start-up that raised $1.5m in only one round of venture funding, eh?
StumbleUpon is the internet equivalent of channel surfing on your TV. StumbleUpon is installed as a web browser toolbar that allows users to ‘stumble’ upon websites that match their profile and interestes by clicking a “Stumble!” button. Users can also rate websites (via thumbs up or thumbs down) – the more positive ratings a website has the more that site will be served/displayed to other ‘stumblers.’ If a site is rated positively and has not been rated by another ‘stumber’, then the site is added to their database as a website that should be served/displayed to other ‘stumblers.’
Frankly, I’m not sure why eBay wants to acquire StumbleUpon…GigaOM has a couple of reasons (one involves integrating it with Skype) but that doesn’t seem too compelling to me. What do you think?