StumbleUpon makes first technology acquisition with 5by
One of the most popular places on the internet to find the latest memes and interesting content is the website StumbleUpon. The discovery engine was created as software in 2001 and the website launched in 2007. Users are now able to find recommended internet content that features Web pages, photos and videos that are personalized for the individual searching.
Now the company has taken another major step, as it announced this week that it had acquired 5by, a video startup based in Montreal that describes itself as a "video concierge." This is the first tech acquisition StumbleUpon has ever made.
"By bringing on a complete team solely focused on video and mobile we believe this will help us accelerate our video discovery product plans," Mark Bartels, StumbleUpon's CEO, said in a statement provided to Mashable.
Bartels went on to say that initially, this deal is about raising awareness of 5by and introducing it to the community. It is also a bet by the company on the growing importance of mobile and video. He went as far as to say that by 2016, video will represent a majority of online content consumed.
"We saw how fast video was growing, and we wanted to move faster," Bartels said.
"Video and mobile and mobile video is its own beast," 5by founder Greg Isenberg told TechCrunch.
This is an example of an established brand using a technology acquisition of a small startup—5by has less than 10 employees—to improve the offerings of both companies.