eBay wins legal battle over Craigslist stake

Online auction giant had sued over a move by Craigslist's board that diluted its stake and kept eBay from holding a director's seat on the board.

A Delaware judge ruled Thursday in favor of eBay in a legal battle with Craigslist over eBay's stake in the online classifieds site. (PDF of 2008 complaint)

The ruling rescinded a move by Craigslist's board that diluted eBay's stake in the company from 28 percent to less than 25 percent and kept eBay from holding a director's seat on the board. eBay referred to Craigslist's move as a "coercive plan," according to a Reuters report, while Craigslist said it was a move to fend off a hostile takeover by eBay, which had launched a rival classifieds site called Kjiji in 2007.

eBay bought its stake in Craigslist in 2004 for $32 million.

While the judge upheld most of eBay's rights as a stakeholder, he didn't rescind a provision that allows for staggered director elections, Bloomberg reported.

Read more of "eBay wins legal battle with craigslist over stakeholder seat" at ZDNet.

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