eBay Sues Craigslist, As Craig And Jim Dilute eBay's Share

from the call-in-customer-service dept

You may recall that eBay was able to buy approximately one quarter of Craigslist back in 2004. The details of what happened were never made entirely clear (and there are some conflicting stories about those details), but it appeared that the two companies co-existed somewhat peacefully for a while, despite eBay's decision to basically create a Craigslist competitor in Kijiji. However, now things are getting more interesting. Apparently, back in January, Craigslist did something to dilute eBay's share, which eBay now feels was illegal. The company has now sued Craigslist over the matter, though most of the details are hidden, as the lawsuit was filed under seal. Given that Kijiji finally expanded into the US last year (just as Craigslist continued to expand internationally), it's no surprise that Craigslist would seek to decrease eBay's stake in the company. Either way, the perhaps already awkward linkage between Craigslist and eBay seems to be getting even more uncomfortable.

Filed Under: craigslist, dilution, kijiji, ownership
Companies: craigslist, ebay

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  1. identicon
    Anonymous Coward, 22 Apr 2008 @ 6:27pm

    Re: Didn't everyone think it was a dumbass idea at the time?

    Neither Craig or the CEO made any money of the eBay deal. What happened was that, early on, Craig gave someone equity in CL. This person apparently left and sought to sell his stake and Craig did not have any money to buy him out. That's when eBay showed up and bought out this guy's stake.

    Craig was really, really bummed about it when it happened and described it to me as 'a bad business decision'. He also said that there were other, worse options that he managed to avoid and the eBay was the best outcome.

    I don't think that Craig has made huge amounts of money on CL, he just gets paid what would be considered a reasonable salary for an exec in his position and not much more. Sure, technically he's worth a lot, but that assumes that CL would have some sort of liquidity event. Know Craig, that's more the highly unlikely while he's still on this planet...

    Fundamentally, CL works well because Craig doesn't give two shits about money.

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