eBay are suing community ad site Craigslist to “safeguard its four year financial investment”. eBay believe that Craigslist’s executives Craig Newmark and Jim Buckmaster have adopted unspecified measures that have disadvantaged eBay and unfairly diluted their “economic interest by more than 10%”. EBay’s general counsel Mike Jacobson has 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”.
In response, Craigslist have said in their company blog that they are surprised and disappointed by eBay’s “unfounded allegations”, and that eBay’s legal action “came to us out of the blue”. It said “we have always treated eBay fairly as a minority shareholder, and plan to continue doing so, despite this unfortunate development. 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.”
Read the full article here: http://news.bbc.co.uk/1/hi/business/7362221.stm
Tags ad blog community craigslist digital marketing Ebay legal action site sue