Starboard Value Urges eBay to Commit to Separation of Classifieds Group
05 February 2020 - 12:56AM
Dow Jones News
By Colin Kellaher
Activist investor Starboard Value LP Tuesday said it is
disappointed with the results of eBay Inc.'s (EBAY) operating
review and called on the online marketplace to commit to a
separation of its classifieds group.
In a letter to eBay Chairman Thomas Tierney and interim Chief
Executive Scott Schenkel, Starboard said it believes eBay shares
are deeply undervalued, and that the company needs a more
comprehensive and aggressive operating plan to drive profitable
growth in the its core marketplace business.
Representatives for San Jose-based eBay weren't immediately
available for comment.
EBay early last year granted board seats to Starboard and
Elliott Management Corp. and agreed to launch an operating review
and a strategic review of its portfolio of assets at the urging of
the activist shareholders.
But Starboard, which says it holds a more than 1% stake in eBay,
Tuesday said the company hasn't made enough progress. Starboard
said a separation of the classifieds business "would unlock a
tremendous amount of value for eBay's shareholders," adding that it
is open to a sale or spinoff of the business.
Shares of eBay, which closed at $34.39 on Monday, rose 3.8% to
$35.70 in premarket trading Tuesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 04, 2020 08:41 ET (13:41 GMT)
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