Ebay launches strategic review after activist investor pressure

Marco Green
March 3, 2019

eBay is pondering a corporate split in another investor-led reexamination of the company's performance. The eCommerce giant has stated these initiatives include an operating review of the business, a strategic review of the company's portfolio, and adding two new members to the Board of Directors.

Shares of eBay rose 2.3 percent Friday after its announcement.

Starboard holds a stake of around one per cent in the company.

EBay said Friday that it is considering the sale or spinoff its ticket-reselling site StubHub and its classified ads business after a push from an activist investor.

In reviewing the market cycles for EBAY, we can see it is still in the rising phase of the current cycle.

The U.S. e-commerce firm will add Jesse Cohn, who runs U.S. hedge fund Elliott Management's U.S. equity activism practice, and Matt Murphy, the CEO of Marvell Technology and a nominee of U.S. hedge fund Starboard Value, to its board.

StubHub on its own could be worth between $3.5 billion and $4.5 billion, and eBay Classifieds, which has an global footprint, could be sold or spun off and worth between $8 billion and $12 billion, Elliott said last month. According to Elliot Management, eBay Classifieds is worth between $8bn and $12bn.

Devin Wenig, president and CEO of eBay, said the company made a decision to move forward with the changes after meeting with shareholders over the last two months. The company also announced that it plans to add a third new independent director later in the year. "Personally, I am looking forward to joining the Board and working with my fellow directors towards our mutual goal of positioning eBay for success and value creation".

Other reports by Click Lancashire

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