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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