The online auction giant eBay is suing the popular internet community ad site Craigslist to "safeguard its four-year financial investment". In a statement, eBay claimed that in January, Craigslist executives took actions that "unfairly diluted eBay's economic interest by more than 10%". No details of those actions were given by eBay.
In its company blog, Craigslist said it was surprised and disappointed by eBay's "unfounded allegations". The company said eBay's legal action "came to us out of the blue".
The case, which is sealed, has been filed in a court in Delaware, where Craigslist is registered. In a press statement, eBay claims that Craigslist's founder Craig Newmark and its chief executive Jim Buckmaster adopted unspecified measures in January that have disadvantaged eBay and its investment. eBay's general counsel Mike Jacobson said: "Since negotiating our investment with Craigslist's board in 2004, we have acted openly and in good faith as a minority shareholder, so we were surprised by these recent unilateral actions. He continues: "We are asking the Delaware court to rescind these recent actions in order to protect eBay's stockholders and preserve our investment."
Craigslist, the seventh most popular English-language page on the Web, hit back in a blog. "We have always treated eBay fairly as a minority shareholder, and plan to continue doing so, despite this unfortunate development," it said. "eBay has absolutely no reason to feel threatened - unless a hostile takeover of Craigslist, or the sale of eBay's stake in Craigslist to an unfriendly party, is their ultimate goal."
View: Full Article @ BBC News
In its company blog, Craigslist said it was surprised and disappointed by eBay's "unfounded allegations". The company said eBay's legal action "came to us out of the blue".
The case, which is sealed, has been filed in a court in Delaware, where Craigslist is registered. In a press statement, eBay claims that Craigslist's founder Craig Newmark and its chief executive Jim Buckmaster adopted unspecified measures in January that have disadvantaged eBay and its investment. eBay's general counsel Mike Jacobson said: "Since negotiating our investment with Craigslist's board in 2004, we have acted openly and in good faith as a minority shareholder, so we were surprised by these recent unilateral actions. He continues: "We are asking the Delaware court to rescind these recent actions in order to protect eBay's stockholders and preserve our investment."
Craigslist, the seventh most popular English-language page on the Web, hit back in a blog. "We have always treated eBay fairly as a minority shareholder, and plan to continue doing so, despite this unfortunate development," it said. "eBay has absolutely no reason to feel threatened - unless a hostile takeover of Craigslist, or the sale of eBay's stake in Craigslist to an unfriendly party, is their ultimate goal."
View: Full Article @ BBC News
I've never even heard of it, what does this site even do?
I've never even heard of it, what does this site even do?
http://www.craigslist.org/about/factsheet.html
It is an exchange site.
That's because ebay made kijiji to be in competition with craigslist.
Your fees suck; there is a reason many of us don't use you anymore!
If they feel that their investment has been mis-managed or such, they are in the right to try to settle this manner.
It sucks to be a dissenting opinion on the "screw the big guys" wave that is washing over this news article, but looking at it objectively, eBay may have a legitimate issue.
Investing in a company should not prevent it from competing in the market place. eBay is obviously a major rival and as a powerful company it should not be able to buy in and effectively stop Craigslist from actions that will increase its market share. That's like Coke buying into Pepsi and then suing if Pepsi takes action to increase its market share - it may be legitimate action but it's bad for the market.
That's like Coke buying into Pepsi and then suing if Pepsi takes action to increase its market share - it may be legitimate action but it's bad for the market.
I don't know what terms the eBay investment was under. It if was a "no strings attached" donation (which I doubt), or if there were terms on what craigslist could do and not do. I am going to guess the latter.
Messrs. Newmark and Buckmaster said they warmed to the idea of eBay buying the former executive's stake after eBay executives made it clear they wouldn't ask it to alter its mission. "They have no interest in asking us to change that in anyway," Mr. Buckmaster said in an interview. "They're happy with us having our full autonomy. They recognize us as experts at what we do."
http://www.craigslist.org/about/press/ebay.stake.html
13 year old kids with "screw the man" attitudes are really annoying.
In the short time you've been here, EVERY SINGLE post I've seen of yours has been nothing but trolling. I have a brain and I make informed posts here.
I think you should be banned. There's my "informed post".
People can still be intelligent and reasonable, but have differing opinions. I like to think that I am a moderately bright and open-minded guy. I happen to prefer Linux, and support its use. I have had discussions with people who don't like Linux and prefer Windows. Just because we disagree on what software is the better solution to various problems doesn't mean that one of us is informed and the other is a drooling idiot.
Lucky for me, I found a buyer on Craig's List who paid $350 for it, and no fee's to boot.
On the other hand, there have been a few auctions I have lost on eBay, and the winners paid MORE then retail prices on the items. It makes no sense sometimes.
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