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EBay sues Craigslist ad website | EBay sues Craigslist ad website |
(about 5 hours later) | |
The online auction giant eBay is suing the popular internet community ad site Craigslist to "safeguard its four-year financial investment". | 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%". | 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. | 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". | 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 company said eBay's legal action "came to us out of the blue". |
We have always treated eBay fairly as a minority shareholder, and plan to continue doing so Craigslist Craigslist's silent emergence | |
The case, which is sealed, has been filed in a court in Delaware, where Craigslist is registered. | 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. | 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. |
Preserve our investment | Preserve our 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." | 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. | 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. | "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." | "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." |
Uneasy relationship | Uneasy relationship |
The relationship between Craigslist and eBay has not always been an easy one. | The relationship between Craigslist and eBay has not always been an easy one. |
Online auction site eBay acquired a 28.4% stake when it bought shares from a former employee who had been given equity by Mr Newmark. | Online auction site eBay acquired a 28.4% stake when it bought shares from a former employee who had been given equity by Mr Newmark. |
Mr Newmark and Mr Buckmaster give away for free most of the services that Craigslist provides. | Mr Newmark and Mr Buckmaster give away for free most of the services that Craigslist provides. |
They have always appeared to have little ambition to milk profits from the popular site, which offers everything from houses for rental to nannies for hire. | They have always appeared to have little ambition to milk profits from the popular site, which offers everything from houses for rental to nannies for hire. |
A year after the deal was completed, eBay, which had said it wanted to learn from Craigslist, started Kijiji.com, a rival international network of classified ad sites that now sells ads in all 50 US states. | A year after the deal was completed, eBay, which had said it wanted to learn from Craigslist, started Kijiji.com, a rival international network of classified ad sites that now sells ads in all 50 US states. |
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