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:SPGI) and even Disney (NYSE:DIS) to up their game.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Google, Rosetta Stone, and Walt Disney. The Motley Fool owns shares of Google, Rosetta Stone, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.