eBay has filed a lawsuit against Craigslist, alleging that the classifieds giant has diluted the online auctioneer’s stake in the company. eBay purchased 28.4% of Craigslist in 2004, but according to the report from Reuters, Craigslist has diluted that stake by more than 10% in an effort to lower eBay’s influence.
Craigslist was recently reported to be on track to pull in revenue of $85-100 million this year – a fraction of what it could conceivably be making if it rolled out paid listings in more markets. While eBay has never done much to try and force Craig’s hand in becoming more commercial, with slowing growth in auctions, perhaps this lawsuit is as much about asserting influence as it is about the alleged dilution.
Craigslist founder Craig Newmark and CEO Jim Buckmaster are named in the suit, which was filed in Delaware Chancery Court.
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