eBay Snaps Up Hunch for $80M

Its recommendation technology will be applied to eBay
By Kevin Spak,  Newser Staff
Posted Nov 21, 2011 11:56 AM CST
In this April 22, 2011 photo, the eBay logo is displayed outside of eBay headquarters in San Jose, Calif.   (AP Photo/Paul Sakuma)

(Newser) – eBay made a splash today by acquiring Hunch, a recommendations startup that launched in 2009, the companies announced. The official statement didn’t list a price, but Michael Arrington’s Uncrunched, which first reported the deal, said it would be "somewhere around $80 million." Hunch founder Chris Dixon will take over eBay’s existing 50-man recommendations team.

Prediction has been a tough egg for eBay to crack because so many of its products are used or unique, making them hard to analyze, eBay’s chief technology officer tells Reuters. “Hunch was solving a similar problem with unstructured data,” he says. “The type of technologies were similar enough that this makes sense."

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