eBay wins legal battle with craigslist over stakeholder seat

A Delaware judge has ruled in favor of eBay in a legal battle with craigslist over eBay's stake in the online classifieds site. The ruling rescinded a move by Craigslist's board that diluted eBay's stake in the company.

A Delaware judge today ruled in favor of eBay in a legal battle with craigslist over eBay's stake in the online classifieds site. (PDF of 2008 complaint)

The ruling rescinded a move by Craigslist's board that diluted eBay's stake in the company from 28 percent to less than 25 percent and kept eBay from holding a director's seat on the board. eBay referred to craiglist's move as a "coercive plan," according to a Reuters report, while craigslist said it was a move to fend off a hostile takeover by eBay, which had launched a rival classifieds site called Kjiji in 2007.

EBay bought its stake in craiglist in 2004 for $32 million.

While the judge upheld most of eBay's rights as a stakeholder, he didn't rescind a provision that allows for staggered director elections, Bloomberg reported.

Previous coverage: CNET: eBay releases details of complaint against Craigslist