Elliott pushes for changes at eBay
Elliott Management wants eBay to dump StubHub, classified ads business
FILE - This Jan. 14, 2015, file photo, shows signage at the entrance to eBay's headquarters in San Jose, Calif. An activist shareholder is telling eBay that restructuring its business could help more than double its stock price. Investment firm Elliott Management, which owns more than 4 percent of eBay stock, said in a letter sent to eBay Inc.’s board that enacting the recommendations could lead eBay’s stock to be valued at $55 to more than $63 per share by the end of next year. The stock closed at $31 on Friday, Jan. 18, 2019. (AP Photo/Marcio Jose Sanchez, File)
NEW YORK (AP) -- An activist shareholder said Tuesday that eBay would be better off without StubHub or its classified ads businesses.
Elliott Management, which owns more than 4 percent of its stock, said in a letter to eBay that if it focused on its online marketplace, the company could double its share price to more than $63 by the end of next year.
Shares of eBay Inc. jumped 8 percent in midday trading.
In a statement from its headquarters in San Jose, California, eBay said it will "carefully review and evaluate Elliott's proposals."
Elliott believes eBay's classifieds business has a potential value of $8 billion to $12 billion, and put StubHub's value between $3.5 billion and $4.5 billion.
