Starboard Value Urges eBay to Commit to Separation of Classifieds Group

By Colin Kellaher

Activist investor Starboard Value LP Tuesday said it is disappointed with the results of eBay Inc.'s (EBAY) operating review and called on the online marketplace to commit to a separation of its classifieds group.

In a letter to eBay Chairman Thomas Tierney and interim Chief Executive Scott Schenkel, Starboard said it believes eBay shares are deeply undervalued, and that the company needs a more comprehensive and aggressive operating plan to drive profitable growth in the its core marketplace business.

Representatives for San Jose-based eBay weren't immediately available for comment.

EBay early last year granted board seats to Starboard and Elliott Management Corp. and agreed to launch an operating review and a strategic review of its portfolio of assets at the urging of the activist shareholders.

But Starboard, which says it holds a more than 1% stake in eBay, Tuesday said the company hasn't made enough progress. Starboard said a separation of the classifieds business "would unlock a tremendous amount of value for eBay's shareholders," adding that it is open to a sale or spinoff of the business.

Shares of eBay, which closed at $34.39 on Monday, rose 3.8% to $35.70 in premarket trading Tuesday.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

February 04, 2020 08:41 ET (13:41 GMT)

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