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Wed Apr 30 2008 17:34:17

More Details on eBay's Dispute with Craigslist

By: Ina Steiner

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eBay published a copy of its corporate governance lawsuit against Craigslist, its founder Craig Newmark, and CEO Jim Buckmaster. Things apparently came to a head when eBay launched its classifieds site Kijiji in the US in 2007.

The lawsuit, with certain confidential information redacted, states that when eBay entered into a Shareholders' Agreement in 2004, it provided that if eBay engaged in competitive activity, certain rights and obligations would terminate, including rights of first refusal to purchase each other shares if any of the parties attempted to sell their shares.

eBay said Buckmaster gave eBay notice of competitive activity after Kijiji's US launch.

At that point, eBay's Josh Silverman stepped down from Craigslist 3-person Board "as a matter of good corporate governance," according to eBay, since he had been associated with Kijiji. (On his LinkedIn profile, Silverman states, "From scratch we built a leading position in European Classifieds within one year, and have over-performed vs eBay's ambitious expectations on all key operating metrics (traffic, revenue, profits, etc)."

eBay claims it was still allowed to elect one director to the Board, but that Craigslist never responded to eBay's request to replace Silverman with Thomas Jeon, eBay's competition counsel.

eBay goes on to say that Buckmaster sent a letter to then CEO Meg Whitman stating Craigslist was no longer comfortable with eBay as a shareholder (July 2007), and that Whitman responded by saying eBay would welcome the opportunity to acquire the remainder of Craigslist it did not already own - whenever Buckmaster and Newmark felt it would be appropriate.

The spat between the two companies is detailed in the lawsuit, available on eBay's website. The section that outlines eBay's claim of Craigslist's attempt to dilute its shares begins on page 12 (section 40).

 




Comments (22) | Permalink

Readers Comments

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: dimes

Wed Apr 30 20:26:22 2008

Craigslist says 'Thanks for the support.'

http://blog.craigslist.org/2008/04/kind-words-appreci
ated/

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: ndog

Wed Apr 30 23:57:10 2008

anyone else notice the issues paypal is having? seller reputation numbers have not calc'ed in months and every time i ping them they just say its being worked on.

same goes for ups integration - some error on the name not matching - known issue, unresolved for months.

did they lose all of these developers?

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Chairman

Thu May 1 03:39:37 2008

How ugly it has become.....

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: greta

Thu May 1 09:11:29 2008

Doesn't take too much thought to determine who is wrong!  Companies do this all of the time, nothing new. eBay wants to make up their own rules and expect others to comply. Join the map, lets make the world yellow!    

~ JOIN THE WORLD WIDE eBay BOYCOTT ~ BE INFORMED ~

Find your State or International Location folder and join us.  Former employees are welcome too!

A place to organize.
A place to unite.
A place to focus.
United we stand, Divided we fall.

http://forums.delphiforums.com/boycottebay
http://www.youtu
be.com/watch?v=Zs3o3Ed3Rog

Add
yourself to the map:
http://www.frappr.com/?a=constellation_map&mapid=137440513566<
BR>
Boycott
Victoriously … While Making Noise!
Evacuate by May 1, 2008!

Please support Australia's protest and sign the petition:
http://www.petitiononline.com/ebayau/petition.html
Ple
ase
contact the ACCC with your concerns, encourage them to rule against PayPal:
http://www.accc.gov.au/content/index.phtml/itemId/823668/fr
omItemId/776499

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: iroller

Thu May 1 13:09:45 2008

oh yea, that's right, the boycott is supposed to start today isn't it.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: James J

Thu May 1 22:32:52 2008

Ebay: Waaaaaaaaaaaaaaaaaaaah!

So when is CL going to start an auction site?  I'd be there in a flash.  Ebay's greed has become the most disgusting turn-off.  I've cut my selling down A LOT for that reason alone.  I just can't stomach (or afford) giving the ebay/PayPal 15% for every store sale much longer.

If ebay could take 15% of the food right out of my children's mouths, I'm sure they would go for it.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Sami Miley

Fri May 2 00:38:37 2008

Give me a break...

Most of you really don't get it do you?

If you want to see how profit driven and immoral the so called non-profit saints are at Craigslist just take a look at the trail of requests by the state of Florida requesting it to remove prostitution from its site.

http://www.mbi-police.org/

These are profit driven monsters cloaked in non-profit PR messages.  Think about it:  If Craigslist grosses $80 million this year as reported by many media outlets, that's tens of millions each for pimp daddy Jim Buckmaster and pimp daddy Craig Newmark.

And to see just how insipid these guys are take a read of this

http://valleywag.com/386262/responding-to-ebay-craigslist-ceo-digs
-hole-deeper

Share dilution is illegal - end of story.  And, why doesn't someone ask just how many real board meetings Jim and Craig had in the past five years.  My sources tell me zero.  Where are the minutes to these alleged meetings?  Do the prostitutes have them?

So - tell me again - you'd rather do business with these sleeze buckets and put that food in your kids' mouths.  Yuck - talk about a bad stomach virus.



More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Carol

Fri May 2 02:03:57 2008

I agree with the above. I've read comments by Buckmaster pertaining to prostitution on CL and you know it's just SO COOL to let the PEOPLE decide what should and shouldn't be on the site. CL fools a lot of people while they laugh all the way to the bank.

I notice too that eBay hasn't responded to any of the letters from the state of Florida either.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Andrea

Fri May 2 12:38:02 2008

The hooker ads are in the back of every sports section in the country....not to mention the Yellow Pages.  Why pick on Criags List? What a huge waste of tax money....

Personally I'd much rather do business in an environment that caters to an independent, free-market approach.  

Too bad that people who prefer a more heavy-handed approach can't be content to just stay away.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: anon

Fri May 2 12:41:15 2008

Taxonomies are intellectual property.
If Craigslist could show that Kijiji used the same taxonomy / categories developed/created by Craigslist then Craigslist  could sue eBay

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Louis

Fri May 2 12:55:07 2008

Ebay is going to screw up CL just like they have everything else.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: sciencefare

Fri May 2 17:44:21 2008

eBay is an evil, arrogant and monopolistic entity that will stop at nothing to perpetuate eBay.

eBay corralled PayPal, and now uses them to help in it’s efforts to dominate online commerce, everywhere.

The deceitful, dangerous, questionably legal and increasingly menacing antics of the terrible duo of eBay-PayPal needs to be reined in.

Donahoe and his gang must be stopped. The angst, anger, and ill will generated by these people is widespread. eBay and PayPal are absolutely out of control.

My best wishes are with Craigslist. Ill regards to eBay and PayPal.

-sciencefare

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Sami Miley

Sat May 3 08:56:45 2008

I still can't believe that you people are CL lovers....
you people probably believe Craig sold equity in his company unbeknownst to him like he purports - yeah right.  It would be like selling a room in your house without being involved.  All you wannabe sleuths out there are so easily won over by Craig's bow tie persona.  Do you think he's really driving a Toyota Tercel?  Pimp Daddy Craig is rolling phat in a black 2008 BMW 750i.  And he and Jim were heavily involved in the equity sale of their beloved company.  

So,there is a river for sale in the desert you can buy off CL!!!
 
 

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: dimes

Sat May 3 10:20:45 2008

I would venture to say a hefty percentage of the people who use Craigslist don't know who 'Craig' is, and don't care.

People like CL because it's an easy, free way to buy or sell or connect.  What's not to like?  What people don't seem to like is the prospect of eBay getting its greedy little hands in there and screwing the place up.  

Who cares how much money the guys who run CL are making?  They're not getting it from us.  

Meg was paid $10 million last year.  She, on the other hand, did get it from us.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Patricia

Sat May 3 12:42:11 2008

Ebay has become a nest of vipers that will stop at nothing to rake in the dough.  I don't feel this applies to all big companies.  I retired from many years in a huge conglomerate and they were nowhere near as underhanded and downright sleazy as ebay has become.  I'm proud of the company I worked for....I'm not proud of ebay!

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Sami Miley

Sat May 3 19:38:19 2008

And you're proud of the CL prostitution listings too - right??

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: anon

Sun May 4 03:41:27 2008

I guess poor Sami Miley never heard of ebay's mature audience category. CL is rather tame compared to what's on ebay. The big difference is that ebay makes money on everything. CL is basically free to all except housing ads in some cities and employment agency ads.

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Sun May 4 12:49:55 2008

The only ones losing on the Ebay/Craislist dispute are the Ebay sellers.

Once more Ebay mangement is succesful at denting the Ebay image, by damaging a valuable partner. Our buyers here this and draw their own conclusions, and continue to downgrade their perceiption of Ebay as a benevolent place to buy at, especially with the disingenous Ebay management action of taking shares in an online classifieds company and then competing with that same company.

We sellers, who have committed to Ebay and are therefore mentioned in one breath with them, again get less or less motivated buyers.

What kind of marketing/promotion do I pay this people for, if they consistently do the reverse and destroy any prevous goodwill, especially the one I create with our own excellence?

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: Bob H.

Sun May 4 15:07:54 2008

Dear eBay,

Just wanted you to know that we ''found'' more shares of Craigslist hidden in the attic. We've decided to keep them and add them to our own stock holdings. Therefore, we regret to inform  you that your ownership percentage in Craigslist has DECREASED. Meanwhile, we are now richer. HAHA

Sincerely,
Craig and Jim
(LOL and ROFL)

More Details on eBay's Dispute with Craigslist   More Details on eBay's Dispute with Craigslist

by: James J

Mon May 5 21:05:50 2008

''So - tell me again - you'd rather do business with these sleeze buckets and put that food in your kids' mouths.  Yuck - talk about a bad stomach virus.''

So I should check out the moral credentials of ebay and CL big shots?

What a laugh.  Meg doesn't have hookers in her private jet so I should give her 15% of my sales income.

Hahahahahahahahahah

And when I find out some big shot at an oil company is making some shady deals what should I do?  Stop putting gas in my car?

This isn't about who is the most moral corporate pig.  It's about who is the most greedy corporate pig... and that would be ebay.

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