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Activist Investor Digs In, Says eBay Needs Urgent Change

Activist Investor Says eBay Needs Urgent Change

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.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

2 thoughts on “Activist Investor Digs In, Says eBay Needs Urgent Change”

  1. “a separation of Stubhub and Classifieds”
    Elliott Management seems focused on these two things. One begins to suspect that EM stands to profit handsomely from the separation of these entities from eBay, and that otherwise they have no interest in what happens at eBay. I have no doubt that “Bain-trained” Wenig understands this perfectly. eBay has plenty of problems but I do not believe “a separation of Stubhub and Classifieds” will do anything to fix them.

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