EBay Says Making Progress, But Will Review Starboard Letter
February 04 2020 - 2:11PM
Dow Jones News
By Colin Kellaher
Online marketplace eBay Inc. (EBAY) on Tuesday said it has taken
significant actions to boost shareholder value and strengthen its
business, but will review the letter from activist investor
Starboard Value LP calling for an immediate commitment to separate
its classifieds business.
The San Jose, Calif., company said its management and board "are
aligned in their commitment to taking all appropriate steps" to
enhance shareholder value. It noted the board includes a Starboard
nominee and a representative from hedge fund Elliott Management
Corp., which has also pushed for changes.
EBay said actions it has already taken included initiating a
dividend, buying back shares and reaching a deal to sell its
StubHub unit for more than $4 billion in cash.
But Starboard, which says it holds a more than 1% stake in eBay,
on Tuesday said the company hasn't made enough progress and urged
it to act swiftly to sell or spin off the classifieds unit.
EBay said it will consider Starboard's perspectives as it
continues to review its business, adding "we remain open to all
value-enhancing opportunities."
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 04, 2020 13:56 ET (18:56 GMT)
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