Craigslist lawyer shocked by eBay action
From Associated press reported that the attorney of Craigslist last Wednesday that officials were caught off guard when told in 2007 that their minority shareholder, eBay, was going to compete directly with them in the online classifieds business in the U.S.
Ed Wes said he was evenly concerned by eBay’s disobedience in the face of Craigslist’s following demand that eBay deprive or sell its 28 percent minority stake because Craigslist was no longer at ease having the online auction giant as a shareholder. Wes said eBay attorney Brian Levey warned him in a telephone call after Craigslist asked for divestiture that eBay CEO Meg Whitman’s response might be to tell Craigslist to go “pound sand.” “It was as if he knew what the response would be even before Meg responded, even before she saw the e-mail,” Wes said. “It was a stunning moment for me.”
Ed Wes is the witness in a lawsuit in which eBay is demanding ant takeover process adopted by Craigslist founder Craig Newmark and CEO James Buckmaster in reply to eBay’s launch of its Kijiji classifieds site and negative response to sell or divest its shares.
Craigslist contends that eBay was out to control Craigslist despite assurances that it was satisfied with a minority stake, and that it reneged on promises that Craigslist would be eBay’s exclusive vehicle in the online classifieds market in the U.S., and that eBay would help Craigslist expand internationally.