Saturday, December 5, 2009
EBay and Craigslist to Square Off in Delaware Chancery Court
EBay's Meg Whitman is set to take Craig Newmark of Craigslist to court in Delaware. The subject of the case is on the issue of EBay's sudden loss of percentage stock holdings. Formerly, Ebay held a 28% share of Craigslist, which was enough to seat a director on their board. Through some still unclear action, presumably, but not definitely, taken by Craigslist executives, EBay's shareholdings dropped from 28% to below 25%, making EBay unable to seat a director on Craigslist's board. EBay has claimed that some shady action has taken place and thus are taking Craigslist to court over it.
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It sounds as though EBay is presumptious in that something is amiss, even though they don't appear to offer any proof. It sounds more like sour grapes. The shareholdings dropped and they have are not willing to take the blame but are willing to point fingers to take the heat off.
ReplyDeleteThis sounds like a case of he said, she said. I would be willing to bet that like mentioned by the previous commenter, Ebay lost its shareholdings and is now crying mistreatment. They just need to take responsibility instead of blaming everyone.
ReplyDeleteIt will be interesting to see how this plays out if they have any evidence of fraud on the part of Craigslist but it looks more like a business gamble that they are now trying to recover from through litigation. Another corporate roll of the dice, in my opinion.
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