Activist shareholder Starboard Value on Tuesday piled more pressure on eBay to sell off its classifieds business, saying it had not made enough progress to improve shareholder value.
EBay last year agreed to sell its ticketing unit, StubHub, for $4.05 billion in cash, under pressure from Starboard and Elliott Management Corp. They had also urged it to sell eBay Classifieds Group as part of a plan that could double the company’s value.
“To achieve the optimal outcome, we believe Classifieds must be separated, and a more comprehensive and aggressive operating plan must be put in place to drive profitable growth in the core Marketplace business,” Starboard said in a letter to eBay’s board.
In Sept. last year, Chief Executive Officer Devin Wenig stepped down, citing differences with the board revamp carried out in March by the company following pressure from the activist investors.
The company is expected to provide an update this year on its Classifieds business, which Elliott valued at between $8 billion and $12 billion.
Elliott Management did not immediately respond to a request for comment on Starboard’s letter to the board.
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