LogoStone_yellow_128x128Northern, WI 04/03/2013 (BasicsMedia) – Livemocha’s cloud-based platform impressed the Rosetta Stone (NYSE:RST) brass. The company’s product was similar to one the larger player was developing, CEO Steve Swad “We’re going to invest more in that platform and move our products from our current platform into that platform. We believe that’ll accelerate our move to the cloud, it’ll improve our flexibility in creating new products and our speed to market.”

“When we look at the Rosetta Stone product, historically it’s been very linear, it’s been very inflexible in terms of the pedagogy, “ said chief product officer West Stringfellow. “It has not adapted to the specific outcomes that a user or learner may desire. Some people may just want to know what it takes to ski in France, others may want to know French end-to-end, others may need a refresher on French for business.”

Livemocha’s network of members will allow Rosetta Stone to glean intel on learners—what they want to know, how long they participate in lessons and demographics, he added.

Livemocha also allows Rosetta Stone to bolt on products in a lower price point. Rosetta Stone’s beginner lesson starts at about $180 for one level. Bulk-purchases of levels 1 through 5 run $500. Livemocha’s offering is for considerably less. “We see both of those (product suites) staying for a while and we’re going to segment and cross-sell, up-sell, down-sell among the products,” Swad said.

Another plus for Rosetta is global footprint expansion. Livemocha’s network includes users in China, Russia and South America, especially Brazil, according to the company’s prepared release.

Livemocha CEO Michael Schutzler will assist in post-acquisition integration efforts as a senior advisor, Swad said.

Rosetta Stone acquired GoGo Lingo, a linguistics curriculum for small children.

Disclaimer I have no position in the companies mentioned in this article.


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