Kara Swisher

Recent Posts by Kara Swisher

Another Legal Tussle for eBay–And It's Not Skype This Time!–As Former CEO and California Guv Hopeful Whitman Kicks Off Craigslist Trial Monday

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Auction giant eBay is headed to court again Monday, and for once, it has nothing to do with the litigious Skype co-founders.

Instead, it’s a battle in Delaware with craigslist, the San Francisco online classified powerhouse that eBay holds a minority ownership position in.

That stake is actually precisely what’s at stake. Currently, the San Jose, Calif.-based eBay (EBAY) has a less than 25 percent one, although it had acquired about 28 percent in a deal in 2004.

The company waged a lawsuit last year against the privately held craigslist for diluting its ownership position by issuing more stock and thereby causing eBay to lose its board seat.

That happened, alleges eBay, through a “coercive plan” by craigslist founder Craig Newmark and CEO Jim Buckmaster.

“We have acted in good faith as a minority shareholder,” said eBay spokesman Alan Marks. “We are simply asking the court to restore our original interest in the company.”

I sent a late email to craiglist’s rep and will post the reply if I get one.

Whitman–who is running for the Republican nomination for California governor–takes the stand on opening day Monday to talk about the original deal with craiglist.

She will be followed by eBay founder Pierre Omidyar.

Of course, craiglist has its own suit in San Francisco, alleging that eBay stole confidential information to create a competing classified service called Kijiji–a dopey name that BoomTown hereby rules someone should be arrested for thinking up–and other misdeeds.

But, so as to be consistent in its awkward legal messes, there is a Skype link: Current Skype President Josh Silverman had been the craigslist board member for eBay and played a key role in developing Kijiji.

Under Whitman’s leadership, ebay also bought Skype, in 2005, and sold a big stake recently.

It was a very controversial sale, which in turn, led to a series of ugly lawsuits from the Skype co-founders, which were just settled last month.

It will be interesting to see what Whitman, who has recently declared that the disastrous Skype acquisition was a good one, says about the craigslist debacle.

Perhaps she’ll say that eBay should have limited its investing during her watch to antiques and other fine collectibles?


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The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald