eBay and Craigslist in Delaware Court
Published December 14th, 2009
eBay’s lawsuit accusing Craigslist of diminishing eBay’s rights as a minority shareholder in the online classified ad company went on trial Monday in a Delaware courtroom. . eBay sued Craigslist in 2008 for lowering its ownership stake to 24.85 percent from 28.4 percent, causing teBay to lose its seat on Craigslist’s board.
Craigslist sued eBay a month later in San Francisco, saying the larger rival used its board seat to glain information to launch its own classified site, Kijiji, and employed deceptive tactics to direct traffic away from Craigslist’s site.
Meg Whitman – eBays former chief executive said eBay paid $32 million for its stake in Craigslist ,$16 million to Knowlton and $8 million each to Craigslist co-founder Craig Newmark and CEO Jim Buckmaster in exchange for special rights that included an ability to block the issuance of new shares.
