Thursday, January 7, 2010, 8:04AM ET - U.S. Markets open in 1 hour and 26 minutes.
Some of the mystery of the eBay-Craigslist lawsuit was cleared up yesterday when eBay published a legal filing accusing Craigslist of illegaly diluting its stake.
Jacob Internet Fund co-manager Darren Chervitz unravels some of the knots in the case in the accompanying video, while a WSJ story suggests that eBay management -- frustrated with Craigslist directors Craig Newmark and Jim Buckmaster failing to capitalize on their company's estimated $5 billion value -- took matters into their own hands. For its part, Craigslist took eBay's launch of classified site Kijiji as a direct competitive threat.
Granted, Craigslist ended up in bed with eBay when the auction site acquired its 28.4% stake via a former Craigslist employee in 2004. But what did Newmark and Buckmaster expect from a publicly traded company whose goal is to maximize shareholder value?
Ebay knew what Craigslist's business model was all about when they acquired their stake from a previous Craigslist shareholder. If they are unhappy with Craigslist continuing to do business as they always have, they need to sell their stake to someone else - not file a lawsuit!!!
Craigslist works for me. It is unusual that something so useful should also be free. But to generally fault craigslist on account of spam seems a bit unfair. Take a look at some of the less populated areas that craigslist covers and you will find a sleek, well-oiled machine for moving products and services to an appreciative customer base. The spam referred to in this interview is happening mostly in the population centers where the greedy prefer to gather. Let's hope eBay fails in its mission to hamstring craigslist, who never asked for eBay's attention as a suitor or partner.
I support craiglist and truly appreciate and love how Newman has protected the site and effectively all of its users who have come to rely on it.
I think the U.S. government should press charges against craigslist for supporting prostitution on its "erotic services" category. Seriously, what craigslist is doing is ILLEGAL!!!
I support craiglist and truly appreciate and love how Newman has protected the site and effectively all of its users who have come to rely on it.
Booooooo on eBay. To hell with eBay and all their shady sellers. I've been ripped off twice on eBay, selling fake religious artifacts for 10's of thousands of dollars as reported on 60 minutes about a month ago. eBay is soooo 2004 and i hope it goes down in flames. Boycott eBay!!!!!
Ebay and Google are evil... Did you notice that Google did not do a cool little image for May Day? That’s International Workers' Day… how could Google forget us today… probably to busy filtering content for the CCP!
it's dumb greed... it's like a large restaurant buying 28% share in a free soup kitchen and then getting mad because the soup kitchen is giving the soup away for free... E-BAY is a SCAM and should be shut down. they probably wouldn't be in such a bad position if they didn't try to financially nickel and dime their customers to death.
Let's not forget that Craigslist DOES make money, yet at the same time uses a ".org" domain name (.org names are for non-profits only). How do you spell hypocrite?
Aaron you said it, how can you take money and not feel like you owe your investor I don't get it. The funny thing is one day Craig may have his dream job of a customer service rep. manning the phones at E-bay. I don't really understand these socialist minded people.
Who's better at linking up local buyers and sellers than Craigslist. They seem genuinely concerned with protecting their online community. Sort of a novel and much needed kind of "shareholder value"
Another typical example of overpaid CEO's trying to rape their own bread and butter clients to make a short term profit , So short sited. If they would have stayed with their original Plan and working for their customers instead of exploiting them they could have had it all . Someoneelse will fill the gap and they will go down , People don't like them .Try Ecrater.com for free. Disappointed businessman
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Yahoo! Finance User - Thursday May 01, 2008 03:18PM EDT
It's a good idea.