Rosetta Stone Makes Itself Smarter

Language learning software maker Rosetta Stone (NYSE: RST  ) bought a little Seattle company called Livemocha on Tuesday. At just $8.5 million in value, this isn't the biggest acquisition in history -- but it may be the most important for Rosetta Stone.

In the following video, Fool contributor Rich Smith explains how Rosetta's quick purchase of Livemocha protects its business from threats like Google's (NASDAQ: GOOGL  ) YouTube, and challenges rivals including McGraw-Hill (NYSE: MHFI  ) and even Disney (NYSE: DIS  ) to up their game.

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  • Report this Comment On April 05, 2013, at 7:59 PM, schaffa wrote:

    It's easy to see who has a clue & who doesnt..

    Livemocha was created & grew to it's current size BECAUSE their members did not want to pay for RS.

    And it will be very hard to convert them because of this fact. Check out their forums if you don't believe me.

    Given RS's track record of screwing things up, I hope they don't screw this up as well.

    I'll be shorting

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