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Julia Wilkinson AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

Julia Wilkinson is Editor of the AuctionBytes Blog and is author of the "eBay Price Guide," "eBay Top 100 Simplified Tips and Tricks," "My Life at AOL" and numerous ebooks about selling online. You can also find her writing on Yard Salers.
Tue Apr 22 2008 17:09:37

eBay Sues Craigslist Founder over Minority Interest

By: Ina Steiner
Sponsored Link

eBay issued a press release stating it has filed a lawsuit to challenge recent transactions implemented by Craigslist's board of directors (Craig Newmark and Jim Buckmaster) and to safeguard its four-year financial investment in the classifieds website.

eBay acquired a minority ownership interest in Craigslist in 2004 - eBay said 28.4 percent. eBay complains that in January of this year, Newmark and Buckmaster adopted measures that, "among other things, unfairly diluted eBay's economic interest in Craigslist by more than 10 percent. By taking these unilateral actions, eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law."

eBay said it is asking the Delaware court to rescind the recent actions in order to protect eBay's stockholders and preserve its investment. The complaint is being filed under seal because some of the information about Craigslist contained in the complaint is governed by confidentiality restrictions.

We're waiting to hear back from Craigslist's PR person for comment.

 




Comments (24) | Permalink
Readers Comments

eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: anon
       
Tue Apr 22 20:59:14 2008
eBay's "investment"

What exactly do they mean by investment?

Did Craigslist see money ($) in this investment?

I thought they bought shares directly from a director/stakeholder?

eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Patricia
       
Tue Apr 22 21:53:17 2008
I think this will forever be known as "The Year of the Big Bully" where ebay is concerned.  They paid Donahoe how much for all this trouble?  Can they get along with anybody?
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
This user has validated their user name. by: Ina
       
Tue Apr 22 22:04:42 2008
Mention of hostile takeover? Look for news story in tomorrow's AuctionBytes Newsflash!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Leonard
       
Wed Apr 23 05:35:59 2008
Yesterday I heard an interview with the CEO of Craig's List. He refuses to put banner ads on his site. He puts having a useful site that's not irritating to visit over profit. He can do this because it is not a publicly-traded company. I guess eBay must have bought the shares direct.

I am sorry to see the outfit that is in the process of trashing what was once a great public service harassing a management that won't do that.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: steve
       
Wed Apr 23 08:35:39 2008
Craigslist should never have gotten into bed with this lumbering giant. They want to control and micro-manage everything.  Just look at all that has transpired in the last six months.  Ebay has turned into the big overweight school yard bully that no one wants to play with.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Todd
       
Wed Apr 23 08:59:10 2008
Hmmm, wonder if ebay sellers have a basis for a lawsuit... by ebay's logic of "By taking these unilateral actions, eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law."". Seems that ebay is always making unilateral decisions that hurt sellers.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: EBAY REFUGEE
       
Wed Apr 23 13:46:25 2008
First of all Ebay came upon the shares they did from an outgoing Craigslist employee that contacted Ebay!  So pretty much ebay got lucky to EVER have owned ANY shares of CL!  The owners of CL would not have wanted ebay to own any shares at all!  

Second...TODD you stated the following...

''mmm, wonder if ebay sellers have a basis for a lawsuit... by ebay's logic of ''By taking these unilateral actions, eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law.''''. Seems that ebay is always making unilateral decisions that hurt sellers.''''

I was just about to say the same thing.  Heres the deal with that...  Ebay is crying foul for something that one of their investments is doing to hurt their (ebays) profits.  Funny, that is EXACTLY what they are CLEARLY doing to their paying members (the sellers) by continually raising fees, and making the feedback system a one-sided monster, and forcing members around the world to use paypal, in turn hurting the sellers profits!  The sellers have an investment in ebay even if we do not own shares.  We, the sellers, MADE ebay!  Our investment is years of hard work and our investment is our livelihoods!  

I find it so funny ebay, that now you are crying about something that is happening to you that is also exactly what you are doing to YOUR customers and members!!!

Ebay, now, not only are you one of the most corrupt, unethical, unreasonable, and untrustworthy companies to ever exist (yes that includes you John Donahoe) but now you have become the internets BIGGEST HYPOCRITE!

BOYCOTT EBAY MAY 1ST AND BEYOND!!!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: HealthyJerky4U
       
Wed Apr 23 15:27:39 2008
Alot of conflicting facts & opinions...

Is eBay flushing themselelves down the toilet?...

Or have they already done it...

WHO pays the ultimate price in the end?
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: anon
       
Wed Apr 23 17:57:57 2008
craigslist should counter-sue for eBay's purchase/development/interest in kijiji which is a direct competitor.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: o.c.d.collectibles
       
Wed Apr 23 21:44:41 2008
I know that many sellers from ebay are now selling on Craigslist and are reaping the profits without having to pay the fees. I wonder if that's the real issue?
Meanwhile I applaud those who are doing it!GO Craigslisters!!!(but make sure you use a google cart and not feepal!)LOL!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Dach
       
Wed Apr 23 22:04:24 2008
Oh my I think I have a lawsuit because Ebay has surely diluted my economic interest in there site. They diluted me right out of business.
Go get em Craiglist, hope you stomp Ebay.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: brian
       
Thu Apr 24 01:57:34 2008
NO MORE E-BAY FOR ME ...I WILL NEVER USE THIER SERVICE...ALL THESE C.E.O.'S WITHIN E-BAY CIGAR FILLED ROOMS ..NEED TO GO OUT BACK TO THE WOOD SHED.. AND RECEIVE A WIPPING..

THE PEOPLE SHOULD CLASS ACTION SUIT EBAY INTO BOARDING UP THEIR BUSINESS..

NEXT TIME I'M IN THE SOUTHBAY I HOPE MY AIM IS FOR A MIDNIGHT ROCK TOSS.

IF THE BAY AREA WANTS TO PULL A CITICAL MASS ON EBAY GAME ON LETS DO IT..
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: BeBopDeluxe
       
Thu Apr 24 06:12:20 2008
Ebay is not satisfied to do their bullying within the confines of their own site.  Now they want to bully Craigslist, too, and squeeze the life (and every dime) out of it, as they've done with their own site, possibly because so many of us smaller sellers have begun selling via CL.  I hope CL finds a way to disentangle themselves from ebay entirely.  I dislike doing business with any entity associate with ebay.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: michelle
       
Thu Apr 24 11:21:26 2008
So does this mean ebay stockholders should sue ebay for their mismanagement because it affects their stock investment value? Seems like ebay is always suing somebody, someplace for something. Imagine if all ebay stockholders got a class action suit against ebay going...and won. Hmmmm.
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Lori
       
Thu Apr 24 17:10:20 2008
Unbelievable! Well if ebay takes over Craigs List at some point which you know they pulled this same carp with Paypal.... I'll use another service!

But until ebay wins.... I'll Stick with Craigslist! In fact I think I'll start putting more stuff on Craigs List now!

Ebay can't buy out all their competition! You Go CraigsList!!!! We're with you!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Lori
       
Thu Apr 24 17:11:32 2008
Michelle

If you're right we should all chip in buy some stock and sue them!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: mindelec
       
Thu Apr 24 19:09:42 2008
'four-year financial investment in the classifieds website.
'


'eBay acquired a minority ownership interest in Craigslist in 2004
'

do you think it's a coincedence that they are doing this at the end of the 4 yr time period?  

i think not...
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Debra
       
Thu Apr 24 21:47:28 2008
They probably think if they can run craigslist out of business it will increase their business. Ebays greed will be the end of them and I think they know they are headed down the drain.   All I have to say is ONLINEAUCTION.COM!!!
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Rick
       
Fri Apr 25 10:31:04 2008
I think Craigs List and On Line Auctions (OLA) should join forces....

Craigs List with an ''ALTERNATIVE'' auction format could kick the crap out of eBay, and that is what is needed to be done........

Give those idiots at eBay a taste of their own medicine.....

Please get these two companies together.

CRAINGS LIST + ON LINE AUCTIONS .....

Somebody should make some T-Shirts with this on it and get everyone to wear them at Chicago ! ...wonder how long it would take eBay to censor them?
eBay Sues Craigslist Founder over Minority Interest   eBay Sues Craigslist Founder over Minority Interest
by: Rick
       
Fri Apr 25 10:32:26 2008
oops....too early in the morning!

CRAIGS LIST + ON LINE AUCTIONS
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