eBay sells equity back to Craigslist, ending uncomfortable alliance and litigation

eBay sells equity back to Craigslist, ending uncomfortable alliance and litigation

Craigslist and eBay are no longer partners. In dissolving the partnership, eBay is selling its 28.4 percent interest back to Craigslist. Both companies note ongoing litigation will cease as a result.

The partnership began in 2004, when eBay purchased equity interest in Craigslist. Things turned sour in 2008, when Craigslist filed suit against eBay, alleging the online auction site stole confidential info.

According to the lawsuit, eBay used confidential info learned in its negotiations to purchase interest in Craigslist. That info was reportedly being used by eBay to start its own classified site, Kijiji, which Craigslist felt violated shareholder rights.

With the messy lawsuits and uncomfortable partnership dissolved, Craigslist and eBay can now focus on competitors like Etsy and Facebook.

Exit, Stage Left [Craigslist]

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