Magento officially started development in early 2007. Seven months later, on August 31, 2007, the first public beta version was released.
Varien, the company owning Magento, formerly worked with osCommerce. It had originally planned to fork osCommerce but later decided to rewrite it as Magento.
In February 2011, eBay announced it had made an investment in Magento in 2010, worth a 49% ownership share of the company.
As of June 6, 2011 eBay owns 100% of Magento. eBay announced that Magento would join eBay’s new X.Commerce initiative. Magento’s CEO and co-founder Roy Rubin wrote on the Magento blog that “Magento will continue to operate out of Los Angeles, with Yoav Kutner and me as its leaders.”.
Yoav Kutner left Magento in April 2012 citing the vision for Magento having changed since the time of acquisition due to high level staff changes. Magento has since been moved to eBay Enterprise.