eBay released fourth-quarter earnings on Wednesday, and it didn’t do anything to dissuade the activist investor from targeting the company. For a refresher, see last week’s article, eBay Once Again in Crosshairs of Activist Investor.
Elliott Management said eBay needs urgent change in a statement on Thursday, citing the Q4 performance and eBay’s guidance for 2019:
“eBay’s fourth quarter earnings provided another example of why the Company needs to significantly improve operational execution and focus on its core Marketplace business. Despite a rapidly growing e-commerce market, eBay once again lowered Marketplace growth expectations to a paltry 1% for 2019.
“It is clear eBay needs urgent change including a holistic operational review which will produce lasting efficiencies and improved execution. Without question, this focus must include a strategic review that evaluates a separation of Stubhub and Classifieds, which is even more necessary given an increasingly disappointing Marketplace outlook.
“These steps are detailed in our plan from our letter, and we look forward to working collaboratively with the Company on improving eBay for all stakeholders.”