Rosetta Stone Acquires Livemocha For $8.5 Million

Posted Apr 2, 2013

Rosetta Stone is a software company that uses images, text, sound, and video to help people learn new languages.  Rosetta Stone has acquired Livemocha for $8.5 million in cash according to a press release.  Livemocha is a Seattle-based online language training company that has over 16 million users across 195 countries.

Rosetta Stone will utilize Livemocha’s technology to move their software to the cloud.  “Livemocha will enable us to quickly migrate our legacy products to a future-proof technology stack with a modern, cloud-based architecture and contemporary means of distribution,” said Rosetta Stone Chief Product Officer West Stringfellow.  It will also give Rosetta Stone’s customers more choice for a lower cost or free alternative product.

“We are in the process of transforming Rosetta Stone to be the most dynamic and ubiquitous technology-based learning platform in the world,” stated Rosetta Stone President and CEO Steve Swad. “Our acquisition of Livemocha will help accelerate that transformation. With Livemocha and its vibrant online community on our side, Rosetta Stone will reach more people and change more lives than ever before.”  Livemocha will keep their offices based in Seattle, which will serve as Rosetta Stone’s Pacific-Northwest office.  Rosetta Stone has other offices in Austin, Texas and San Francisco, California.

Unfortunately, the institutional investors that put money into Livemocha saw a loss as a result of the acquisition.  Livemocha raised a total of $14 million in the last six years, which is significantly more than the acquisition.  Some of Livemocha’s investors included August Capital and Maveron.