Whitman Testifies in EBay-Craigslist Dispute
Former eBay Inc. Chief Executive Meg Whitman was never aware of any plans by the company to steal any secret information from Craigslist while eBay (EBAY) was a minority stakeholder, Ms. Whitman testified on Monday.
Ms. Whitman, who served as eBay’s CEO from 1998 until 2008 and is now running for governor of California, added that eBay originally had hoped to purchase all of Craigslist; however, she learned it would be impossible to gain a controlling interest without purchasing stock from Craigslist owners Craig Newmark and Jim Buckmaster.
The comments came on the first day of a trial between eBay and Craigslist, which are fighting about the size of the e-commerce giant’s minority stake in Craigslist, the online classified Web site.
During testimony and cross-examination, Ms. Whitman faced questions related to confidential information eBay received as an investor in Craigslist and how eBay conducted itself while establishing its international classified businesses.
EBay, based in San Jose, Calif., bought a minority stake in Craigslist in 2004 for $32 million, paying half for the shares of Phillip Knowlton, a Craigslist co-owner with Messrs. Newmark and Buckmaster, and half to Craigslist for additional shareholder rights, which included a seat on Craigslist’s board.
