In order to safeguard its four-year financial investment in craigslist,
today filed a lawsuit in the Court of Chancery of the State of Delaware
challenging recent transactions implemented by craigslist’s
board of directors, consisting of Craig Newmark and Jim Buckmaster.
In 2004, after negotiating the transaction with craigslist’s
board, eBay acquired a minority ownership interest in craigslist of 28.4
In January 2008, however, Newmark and Buckmaster adopted measures that,
among other things, unfairly diluted eBay's economic interest in
craigslist by more than 10 percent. By taking these unilateral actions,
eBay believes that Newmark and Buckmaster breached their fiduciary
duties in violation of Delaware corporate law.
“The recent actions by the craigslist
directors have disadvantaged eBay and its investment in craigslist,”
said Mike Jacobson, eBay Senior Vice President and General Counsel. “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. We
are asking the Delaware court to rescind these recent actions in order
to protect eBay’s stockholders and preserve
The complaint is being filed under seal because some of the information
about craigslist contained in the complaint is governed by
About eBay Inc.
Founded in 1995, eBay Inc. connects hundreds of millions of people
around the world every day, empowering them to explore new opportunities
and innovate together. eBay Inc. does this by providing the Internet
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Since its inception, eBay Inc. has expanded to include some of the
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Shopping.com, and others. eBay Inc. is headquartered in San Jose,