|Tue Jan 22 2019 11:25:52|
Activist Investor Eviscerates eBay Management
By: Ina Steiner
eBay has problems, and one of its largest shareholders outlined them in a scathing letter to eBay's Board today. Activist investor Elliott Management pulled no punches about what it thinks of eBay CEO Devin Wenig's team's performance. It outlined major shortcomings and crafted a plan to right the ship.
We outlined some of the highlights of the letter we felt would be of particular interest to sellers in today's Newsflash article
(there's a lot more to digest in the letter linked to in the article). Elliott Management pointed to technical issues plaguing the eBay site, a lack of focus on the part of the company, and the "alarming" turnover among eBay's leadership team.
eBay responded to the attack with the following statement:
"The eBay Board and leadership team regularly engage with our shareholders and value their input. We are focused on delivering value for our shareholders, customers and employees by driving the best choice, the most relevance and the most powerful selling platform to deliver growth. Accordingly, we appreciate Elliott's recognition of the strength and power of eBay's business and will carefully review and evaluate Elliott's proposals. We look forward to the opportunity to engage with Elliott, as we do with all shareholders."
As we noted in the article, even a former eBay senior executive acknowledged the plight of the company, calling eBay "the next AOL > Yahoo! of tech giants." Wow.
The last time eBay was targeted by an activist investor, it didn't go well. Take a look at Elliott Management's proposals and let us know if you think this spells good news or bad news for sellers.