eBay Aquires Magento; References New Platform X.Commerce
Yesterday, eBay announced its intent to fully acquire Los Angeles-based Magento Commerce (formerly known as Varien). This move follows a year of holding a minority stake in the company and monitoring its growth and potential. Full details of eBay’s acquisition have not yet been released, but we are confident that the deal will go through as scheduled for Q3 2011.
As developers and users of Magento since 2008, we have invested heavily in the platform, its community, and in our own skills and abilities. Although we support other e-commerce solutions besides Magento, we rarely suggest them for new projects and mainly provide support services for these platforms. Magento has been, and will hopefully continue to be, our bread and butter e-commerce solution.
With this in mind, we don’t see eBay’s acquisition of Magento as an threat to our businesses and those of our clients. Instead, we see an opportunity for eBay to provide its technical and operational expertise in the form of strategic guidance for the Magento platform and its community. We see the acquisition as a way for eBay to learn from Magento, and vice versa. Reading Magento’s official FAQ PDF made us feel a little better.
The game-changer, however, is eBay’s formation of a new e-commerce platform called X.Commerce that aims to integrate Magento’s technology. Again, we don’t see this as a threat to Magento as an independent platform, but we do believe that a slow transition will begin to migrate Magento users and developers over to X.Commerce. This brings a host of challenges for eBay’s X.Commerce group as well as for the Magento community. Check out the video below for what eBay’s CEO has to say about it.
And Magento isn’t the only platform scheduled to be play a part of X.Commerce: check out the details on eBay acquiring GSI Commerce.
eBay is definitely stirring up the e-commerce industry with these bold moves, and we’re going along for the ride.
For the time being, we’re just wondering what else Christopher Payne (VP and Head of eBay North America) will divulge during his keynote presentation at the IRCE 2011. We’ll be there to get the latest, straight from the source.