eBay Acquires Hunch For Roughly $80 Million
eBay Inc. (NASDAQ:EBAY) will be announcing that they have acquired Hunch for around $80 million according to Michael Arrington. Hunch was started by Chris Dixon, Caterina Fake, Tom Pinckney, and Matt Gattis. Hunch has raised about $20 million in total funding since they launched.
Hunch is a start-up company that allows users to answer questions using crowd-sourcing techniques. Hunch will be used on eBay for recommendation technology to revamp their own e-commerce recommendations. Dixon will be responsible for the existing 50 person recommendations team and will be opening an office in New York.
The New York office will grow to about 200 employees that will focus on recommendations. The team will analyze a lot of eBay purchase and sales data to predict inflation or a potential recession.
Hunch was founded in 2008. In mid 2010 Google was rumored to be in talks with Hunch for an acquisition. Investors in Hunch includes General Catalyst Partners, Bessemer Venture Partners, SV Angel, and Khosla Ventures.@amitchowdhry or on Google+ at +AmitChowdhry