In its second-largest acquisition, Amazon buys the company for $970 million.
Roy Rubin, the chief operating officer and co-founder at Magento, announced he’s stepping down. Magento’s other co-founder left two years ago, shortly after eBay acquired the e-commerce software provider.
Roy Rubin is out as chief operating officer at Magento, an e-commerce platform provider that eBay Inc. purchased in 2011. Rubin co-founded Magento with Yoav Kutner, who left in April 2012, shortly after the eBay acquisition.
Mark Lavelle, eBay Enterprise senior vice president of product and strategy will continue to oversee eBay Enterprise’s product organization, the eBay business unit that includes Magento and other eBay acquisitions, notably GSI Commerce. Lavelle says the direction of the division will not change. “The plans and goals we have solidified for 2014 remain unchanged and Magento will continue to serve the needs of retailers of all sizes by providing the world's most open, flexible, and scalable commerce platform,” he writes in a blog post. “We are laser focused on developing new features and capabilities on the Magento Platform to further extend our leadership position in commerce, enabling our partner and developer communities to create opportunities for growth and innovation.”
This announcement comes on the heels of several shakeups at Magento and eBay Enterprise. Chris Saridakis resigned in January as president of eBay Enterprise, citing personal reasons. Last week, he was charged with insider trading for allegedly tipping friends and family to buy GSI Commerce stock prior to the eBay acquisition. He had been the CEO of GSI at the time of the $2.4 billion sale.
In March, Magento announced it was laying off workers in its Los Angeles, Austin, TX, and Kiev, Ukraine, offices, though it declined to specify how many employees were affected.
Magento is the third most-used platform for e-retailers in Internet Retailer’s 2014 500 Guide, counting 34 e-retailers among its clients. Larger clients include Coach Inc. (No. 85) and publisher Scholastic Inc. (No. 97). 48 retailers cite Magento as their e-commerce platform vendor in the 2013 Second 500.
Worldwide, 189,919 web sites use Magento, according to BuiltWith Pty. Ltd., a firm that analyzes the technology used on web sites. Most are smaller shopping sites.
Magento’s free Community Edition is popular with e-commerce startups. The company offers an Enterprise Edition with built-in features and technical support that starts at $15,500 per year in licensing fees.