EBay Says Making Progress, But Will Review Starboard Letter

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 [e-mail]

(END) Dow Jones Newswires

February 04, 2020 13:56 ET (18:56 GMT)

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