eBay Owns 49% Of Magento Inc – Confirmed

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.

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  • EbaySucks

    Ebay is a cut throat business that destroys all business it buys as look at prostores which I use and will soon cancel because it sucks. Why? Endless issues of messing up my paypal express and authorize.net integration. How so? I don’t know as I fix the issue then a week later it switches the two accounts Passwords and user names. Which I am simplifying the actual names. Plus to use paypal express on prostores you need a certificate and not a Signature which deems all my other channels useless to sell on ebay. Since you can’t have both. On top of this a lousy everything else to the competitors. Point being ebay sucks period!

    They don’t take care of their sellers at ebay and constantly raise their rates 300% since I started selling on ebay. Now they make more then I do!

    I did overe 10k a month on paypal and they never lowered my 2.9% fee as they claimed technical issues and their engineers are fixing. This went on for months so I started using my merchant account instead through ebay payflow which is actually a free paypal payflow. Ebay does everything the hard way for its users and constantly changes the rules for their bottom line period! I thought the first CEO Meg was a nut job but John Donohue takes the cake!

  • PaypalSucks

    all my channels useless to sell on my websites with paypal.

    Correction

    Also would like to mention that I cancelled my Magento Website I was creating since ebay’s fingers are now in the mix because they will mess this up too which I can forsee a 300% increase in 5 years or less.

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  • http://www.magentomagik.com/ Ashish @Magento Themes

    You can anytime build and deploy Self hosted Magento site.. i don’t think eBay can do any harm there :)

  • Indianexpo

    I hate eBay, they are suckers, exploiters and extorters. Sellers are an important part of their business model and they dun care about them!! Ebay as a company does not has business character. Whatever rises like a bullet has to fall like a stone and I am the one who is waiting for the day. I am not a doom days predictor, but an talinkg about natural phenomena

  • Ebat

    WHAT A BAD NEWS

  • http://twitter.com/steeltools SteelWorkersTools

    Ebay will ruin Magento eventually just like they ruined there own business with high fees. Also ebay is a deliberate competition killer, we really should have the competition commision investigate their sole use of paypal as payment source on ebay.com etc.

  • http://ulc.net Become Ordained Online

    The only thing worse would be if Google stuck its fingers into the pie. Or have they already? ebay knows how to screw a cat, Google knows how to confuse a cat, and together, they’d get that cat strung up but good!

  • http://mados.wordpress.com/ Anna

    There is actually an alternative payment processor/method in Australia for that reason: PayMate.

  • http://mados.wordpress.com/ Anna

    Does that mean that Magento Go is or will soon be Ebay-integrated, like ProStores?

    I need to open an online store by 1 June and have been trialling ProStores during the last few weeks. I am not impressed with ProStores admin functionality: cumbersome, slow, poor user interface, too many steps to perform simple actions. It looks like an old beta version that was never updated. And I can understand from my Internet search that it also has its fair share of technical difficulties, downtime and sour ex-customers.

    So I wonder if Ebay plans to give up on ProStores and focus on Magento Go. Most importantly:

    – Will Magento Go be integrated with Ebay (like ProStores) in the near future?

    That is the main/only point of attraction for ProStores… which I am now almost 100% certain we will ditch (at least if I am to decide).

  • Ecdesigns

    I think its great they just need to get paypal to work better with magento as of now i think it sucks unless you want to pay for payment pro. the express checkout is loaded with bugs. won’t pass shipping values.

  • http://www.goodboatshop.co.uk/garmin-gpsmap-451-gps-chart-plotter-with-internal-antenna.html Richard

    I’m hoping this investment will prompt a free ebay extension, but I’ve not seen anything yet :-( Fingers crossed though…

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