Judge Says Craigslist Can't Just Dilute eBay Off Its Board, But Can Keep eBay Off The Board Otherwise [Updated]

from the that's-not-how-it-works dept

We were pretty skeptical two plus years ago when the details came out concerning the lawsuit between eBay and Craigslist over Craigslist’s decision to exclude an eBay representative from its board to unilaterally diluting eBay and ignoring a proposed new board member, while holding board meetings without him. As we said at the time, it’s quite clear why Craigslist did what it did, but that doesn’t make it legal. And, in fact, a judge has now ruled in eBay’s favor, rescinding the poison pill anti-takeover rules that Craigslist’s board passed without eBay present. The whole situation really is a bit of a mess, and while I think Craigslist was wrong to take the actions it took here, it does make you wonder if eBay should recognize that having a board member on Craigslist’s board is too big a conflict of interest. Updated: The original coverage of this news was a bit vague, but now the details are coming out, and the report is mixed: the dilution was rolled back, so eBay still owns the larger percentage, but eBay has been kept off Craigslist’s board for now…

Filed Under: ,
Companies: craigslist, ebay

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Judge Says Craigslist Can't Just Dilute eBay Off Its Board, But Can Keep eBay Off The Board Otherwise [Updated]”

Subscribe: RSS Leave a comment
7 Comments
Mike Masnick (profile) says:

Re: Couldn't understand the headline at first.

I think the word you were looking for was “deluded,” instead of “diluted.” The former means “to mislead” where the latter means “to make weaker (usually by the addition of water).”

No, diluted is the right term. The existing Craigslist board effectively added more overall shares to the company, which weakened the ownership of eBay’s stake from 28% to below 25%. So, it’s like adding water… just that it’s equity, not water.

SomeoneInMyHeadAndItsNotMe (user link) says:

Re: Couldn't understand the headline at first.

If you have a mixture of X and Y, you can dilute the mixture of its Y element either by increasing the X element or decreasing the Y element. In this case, ebay was the Y element, and the board was diluted of it by removal of said element. Your post makes no sense. Who was misleading whom?

cocokiss (user link) says:

chanel purses & chanel bags

Women all over the world would love to own even one bottle of Chanel perfume but hesitate due to its high price.House of Chanel, the Parisian based fashion house is the most recognized name in the world of haute couture and had its beginnings in 1909 when Coco Chanel opened her first shop.Chanel at first sold only women’s clothing such as blazers, skirts.http://www.chanlesonline.com

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...
Loading...