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ebay and Craigslist fight it out in court over ownership percentages
Craigslist and eBay are seen in many eyes as direct competitors, but despite the competition between the two eBay holds a minority stake in Craigslist. A 2004 purchase grabbed eBay a 28.4% stake in Craigslist.
A suit filed by eBay this week against Craigslist alleges that the Craigslist Board of Directors, consisting of only two members including founder Craig Newmark and chief executive Jim Buckmaster, took action to dilute eBay’s stake in the company.
According to eBay unspecified actions taken by Craigslist have reduced eBay’s stake in Craigslist by more than 10%. ebay asked the court to reverse the actions of Craigslist to protect eBay’s investment and preserve its stake in Craigslist.
Reuters reports that a blog post on Craigslist stated that it was surprised and disappointed by eBay’s allegations that reportedly came without any dialog with Craigslist. The blog post continued saying, “[the lawsuit by] a company that views Craigslist as a prime competitor … seems unethical, and suggests ulterior motives such as a hostile takeover of Craigslist or the sale of eBay’s stake to an unfriendly party.”
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