Activist investors want the online marketplace to spin off or sell StubHub, the online ticket reseller, and its classified-ads business because they could be worth more on their own. Elliott said StubHub could be worth as much as US$4.5 billion, and the classifieds as much as US$12 billion. Elliott disclosed a four per cent stake, and Starboard is reported to have also taken a significant stake in the company. eBay shares jumped almost 12 per cent at the news in pre-trading, and are up over six per cent on Tuesday. (Wall Street Journal)
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Activist investors want the online marketplace to spin off or sell StubHub, the online ticket reseller, and its classified-ads business because they could be worth more on their own. Elliott said StubHub could be worth as much as US$4.5 billion, and the classifieds as much as US$12 billion. Elliott disclosed a four per cent stake, and Starboard is reported to have also taken a significant stake in the company. eBay shares jumped almost 12 per cent at the news in pre-trading, and are up over six per cent on Tuesday. (Wall Street Journal)
Talking point: eBay has previously shown it can be swayed by activist investors: In 2014, investor Carl Icahn urged the company to spin off PayPal, which it did in 2015. While eBay has said it will review the proposal, ignoring the recommendations could have consequences—Starboard has proven effective at replacing board members, and both it and Elliott have successfully used unconventional tactics to get management to agree to their demands.
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