Feeds

eBay sues Craigslist as family squabble goes public

eBay's 28.4% stake diluted

Protecting users from Firesheep and other Sidejacking attacks with SSL

eBay has taken a family squabble with eBay public and it could get messy.

In a lawsuit filed Tuesday in the Court of Chancery of the State of Delaware, the online auction house sued Craigslist, the online provider of classified ads for hookers, used toasters and room-mates that is 28.4 per cent owned by eBay. eBay claims that Craigslist's board of directors, which consists of founder Craig Newmark and CEO Jim Buckmaster, has taken unilateral and illegal actions to unfairly dilute that stake.

"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," eBay General Counsel Mike Jacobson said here. "We are asking the Delaware court to rescind these recent actions in order to protect eBay's stockholders and preserve our investment."

The dealings between the two were so open, apparently, that the lawsuit was filed before eBay even bothered to broach the issue with Craigslist, according to a response headlined Tainted Love.

"We are surprised and very disappointed by eBay's unfounded allegations, which came to us out of the blue, without any attempt to engage in a dialogue with us," it states. "We have always done our best to protect the well-being of Craigslist and the Craigslist community, and will continue to do so. 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. (In which case, they’re out of luck!)"

eBay, which acquired the stake from a former Craigslist executive in 2004, said it filed the complaint under seal because it includes details protected by confidentiality requirements. Delaware's Court of Chancery, is a popular forum for settling internal disputes among companies registered in that state. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.