Judge Rules In Favor of eBay Versus Craigslist Over Equity Case
A judge has ruled in favor of eBay Inc. (NASDAQ:EBAY) over an equity case with craigslist. A judge reinstated eBay’s 28.4% stake in Craigslist. But the judge ruled that Craigslist can keep eBay off of their board of directors.
This means that there was no clear victory to any of the companies at the Delaware Chancery Court. There is still another court case between the two companies that was filed in San Francisco. Craigslist claims that eBay used their board seat to gain confidential information about the classifieds ads business to launch their own business called Kijiji.
Supposedly Craigslist diluted eBay’s shares to 25% from 28.4%. “EBay brought this suit to protect its own shareholders and preserve its valuable investment in Craigslist,” said eBay in a statement.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry