Elliott Has a Point When It Comes to EBay
Marketplaces are critical to e-commerce, and the company could do more to compete with Amazon and Walmart.
Probably not.
Photographer: Tom Cooper/Getty Images
One of the internet’s earliest and most lasting successes, eBay Inc., is under pressure again to remodel itself to fix a persistently cheap share price. The latest initiative from a prominent investor lacks crucial details but also highlights eBay’s missed opportunities.
Elliott Management Corp. disclosed Tuesday that it owns more than 4 percent of eBay’s stock, and it unveiled a blueprint for changes that the firm said could as much as double eBay’s stock price. In a statement, eBay said it would review and evaluate Elliott’s proposals. In addition, the Wall Street Journal reported that another activist known for pushing companies for changes, Starboard Value LP, had also purchased a significant stake in eBay and has a similar fix-it plan.