Online discovery engine StumbleUpon this week made its first acquisition.
StumbleUpon bought Montreal-based startup 5by, a video streaming service, for an indisclosed sum.
According to the terms of the deal, 5by's six-person team is moving to San Francisco to work out of StumbleUpon's headquarters. However, it's not a talent acquisition: 5by will continue to be developed as a standalone product.
5by will help StumbleUpon accelerate its push into online video, which the company is convinced is a growing segment long-term. The two services are so similar that 5by CEO Greg Isenberg is quoted as saying "people used to call us the StumbleUpon of video."
Isenberg will remain the CEO of 5by, which launched in March of last year. “It helps you sift through billions of videos on the Internet and helps you get to the ones that you care about, so all you have to do is lean back,” said Isenberg of his startup at the time. “And people just want to lean back.”