Tuesday, April 2, 2013

Live Mocha and Rosetta Stone are Merging! $8.5 Million Price Tag

I am not liking the idea of these two companies merging. I received this email from Live Mocha stating that they would "merge" with Rosetta Stone. Then, I found information about the acquisition on the from page of Yahoo News, in short, Rosetta Stone bought live Mocha for $8.5 Million dollars.

Live Mocha is  a social network, whereas Rosetta Stone is a cash cow. Do not get me wrong, I like Rosetta Stone. I sincerely do. However, live mocha is more personal, more granola, and is available to people for FREE.

If Live Mocha starts turning into a cash cow, it is time for people to look elsewhere. This acquisition leaves a bad taste in my mouth. Learning languages is so expensive and time consuming that most people cannot possibly do it. If Rosetta Stone made this purchase because they want to reach more of the global, online language learning community I am fine with that. Lets be real for a second - when it comes to business it is about the bottom line.

I have helped many students from around the globe learn English on live mocha. These are people who cannot possibly afford Rosetta stone prices.The Rosetta Stone demographics and the more granola Live Mocha demographics are different.

How does Rosetta Stone expect to recoup that $8.5 million investment? They will try to get it from Live Mocha users. If they try milking these people, particularly people from third world countries with bad internet connection - I will do what I can to encourage people to find another online language learning social network.

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