In a move that pits two of the Internet’s most popular sites against each other, EBay Inc. sued Craigslist yesterday, alleging the classifieds company unfairly tried to dilute the auctioneer's stake in it.
EBay purchased a 28 per cent stake in privately held Craigslist in 2004. But in January, EBay says, Craigs­list’s board, consisting of founder Craig Newmark and chief executive Jim Buckmaster, unilaterally acted to dilute EBay's economic interest in Craigslist by 10 per cent.
EBay was an unsolicited suitor to quirky Craigslist in 2004. An unnamed former Craigslist shareholder sought out EBay and sealed a deal whose financial terms were never disclosed.