EBay to buyout New York Start-up Hunch
Global e-commerce and online payments platform eBay Inc. on Monday announced plans to acquire a New York start-up called Hunch Inc. This is according to a post published on Michael Arrington’s blog, Uncrunched.com.
Michael is the brains and soul behind TechCrunch, a popular web publication. He is also a general partner at CrunchFund. EBay Inc. anticipates acquiring Hunch Inc. technological and human-skill resources in a deal valued at about $80 million.
The San Jose-based EBay, which lists on NASDAQ as EBAY, will be looking forward to use Hunch’s recommendation technology to improve its own e-commerce recommendations. Hunch top-range recommendation service fully runs on a patented prediction technology christened “Taste Graph”.
Hunch’s technology allows the user to make and discover great recommendations based on the user’s specific tastes. Hunch goal is to create a taste graph that connects each person on the internet with his or her affinity for every entity may it be a car, camera, book or anything else on the web.
“We are engaging consumers in innovative ways and attracting top technologists to shape the future of commerce,” said Mark Carges, Chief Tech Officer and Senior Vice President, Global Products, Marketplaces in a press release released by eBay on Monday. “With Hunch, we’re adding new capabilities to personalizing the shopping experience on eBay to the individual relevant tastes and interests of our customers. We expect Hunch’s technologies to benefit eBay shoppers as they browse and buy, and new ways to connect the right products with the right customers.” He added.
Since it was commissioned in 2008, Hunch Inc. has raised an approximate $20 million in funding. The company was founded by Chris Dixon, a contributing writer at TechCrunch, Tom Pinckney, Matt Gattis and advisor Caterina Fake. After the acquisition, eBay’s management will be expecting Chris to lead a 50-person recommendations team put together by and for eBay. In addition, he is to open, run and grow an office in New York.
Firms backing the deal include General Catalyst Partners, which runs operations from an office in Palo Alto, Silicon Valley-based angle fund SV Angel, as well as Menlo Park-based Bessemer Venture Partners and Khosla Ventures.