StumbleUpon has made its first acquisition after 11-years in business by purchasing a Canadian video discovery service startup, 5by.
StumbleUpon has made a bold move to expand business. In its first acquisition after being in business for eleven long years, StumbleUpon has bought a Montreal-based startup, 5By, Tuesday, in an attempt to bring video recommendation to smartphones. The financial details of the deal were not disclosed.
StumbleUpon, an online destination for exploring digital content from various domains, closed its first deal mid-September. The company says that the entire six-member 5by crew will be moving to StumbleUpon's San Francisco head office. The team will develop a 5by mobile application as a standalone product in the coming months, according to StumbleUpon CEO Mark Bartels.
"By bringing on a complete team solely focused on video and mobile we believe this will help us accelerate our video discovery product plans," Bartels, told Mashable.
5by, which described itself as "your video concierge," recommends videos of various genres based on users' mood. You can now "stumble" upon the newly acquired site, 5by, and enlighten yourself.
StumbleUpon was founded by Garrett Camp, Geoff Smith, Justin LaFrance and Eric Boyd in November 2001. Just one year after the service kicked off, it had 1 million registered users and currently serves 30 million registered users and 100,000 advertisers. The company has turned a good profit over the years, and last year, StumbleUpon reported $30 million in revenue. It aims to reportedly generate $35 million to $40 million in revenue this year.
