Please ensure Javascript is enabled for purposes of website accessibility

Rosetta Stone Buys Livemocha

By Rich Smith - Apr 2, 2013 at 4:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For $8.5 million, Rosetta buys itself an online language community 16 million members strong.

Disc-based language-learning company Rosetta Stone (RST) is moving farther online.

On Tuesday, the Arlington, Va.-based language tutor announced that it has just bought Seattle's Livemocha online language-learning business for $8.5 million cash, bringing a customer base of 16 million Livemocha members into the Rosetta Stone fold.

Already moving in the online direction, Rosetta CEO Steve Swad says today's purchase "accelerates Rosetta Stone's transition to cloud-based learning solutions" and furthers "the process of transforming Rosetta Stone to be the most dynamic and ubiquitous technology-based learning platform in the world." It also gives Rosetta the option of offering its customers "a low-cost or even free alternative product to offer learners around the world."

According to the company's press release, Livemocha boasts 16 million members from 195 different countries, "all teaching, learning, and interacting online."

Turns out Livemocha is popular with investors, too. After announcing the deal, Rosetta saw its shares shoot up more than 4% to $15.67 for the day. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Rosetta Stone Inc. Stock Quote
Rosetta Stone Inc.
RST

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.