Suggested Predictions
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rBay, the world's largest online auctioneer, was an unsolicited suitor to quirky Craigslist in 2004. An unnamed former Craigslist shareholder sought out eBay and sealed a deal whose financial terms were never disclosed. Currently eBay owns a 28% stake in privately held Craigslist.
But in January, eBay says, Craigslist's board, consisting of founder Craig Newmark and Chief Executive Jim Buckmaster, unilaterally acted to dilute eBay's economic interest in Craigslist by more than 10%. The complaint is under seal because of confidentiality restrictions, according to a company statement. Craigslist may ask the court to make the complaint publicly available, eBay said. How will the law suit be judged?
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http://blog.wired.com/business/2008/0...
"Coming from a company that views Craigslist as a prime competitor, filing suit without so much as mentioning these assertions to us beforehand seems unethical, and suggests ulterior motives," the Craigslist post read. "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."
Perhaps it was the time that eBay wanted a bigger control over the business direction. Craigslist reacted by diluting the ownership of eBay. Well, what a flight between big shark and smart fish.