Craigslist fires back, blasts eBay actions as unethical (via Business Week)
Craigslist is firing back at its rival and minority owner eBay, scolding the online auctioneer’s actions as unethical and smelling of a hostile takeover.
In a move that pits two of the Internet’s most popular sites against each other, EBay Inc. sued the online classifieds company Tuesday, alleging it unfairly tried to dilute eBay’s stake in it.
EBay purchased a 28 percent stake in privately held Craigslist in 2004.
But in January, eBay says, Craigslist’s board, consisting of founder Craig Newmark and Chief Executive Jim Buckmaster, unilaterally acted to dilute eBay’s economic interest in Craigslist by more than 10 percent.
In an entry titled "Tainted Love" that Craigslist posted on its blog Tuesday night, the company said the allegations are unfounded and the lawsuit came from out of the blue.
Yikes…. So much for the takeover.