Starboard Pressures EBay to Split Off Classifieds

[hioctane62]

https://finance.yahoo.com/news/starboard-steps-pressure-ebay-split-140501497.html 

Activist investor Starboard Value is ramping up pressure on EBay Inc. to separate its classifieds business and implement more aggressive operational targets, arguing the e-commerce company has not done enough to improve its performance.

The New York-based hedge fund, which owns more than 1% of the company, wrote in a letter to the management and board that EBay hasn’t done enough in the nearly 12 months since agreeing to review its classifieds business along with ticket reselling business, StubHub, which was sold last year.

“In order to achieve the optimal outcome, we believe classifieds must be separated, and a more comprehensive and aggressive operating plan must be put in place to drive profitable growth in the core marketplace business,” wrote Peter Feld, Starboard managing member, in the letter.

From all indications, eBay only sees the "profitable" part, and "growth" is not in their interest because it might benefit sellers. Growth won't happen, because eBay only knows how to profit by fleecing sellers who are selling less and less. Ebay has a public image problem, and they continue to compound it.

[my-cottage-books-and-antiques]

The full text of the letter can be found here:

http://www.starboardvalue.com/wp-content/uploads/Starboard_Value_LP_Letter_to_EBAY_CEO_and_Board_02....

For many of us, this is the most important part. Thread could have been titled: Starboard Pressures eBay to Return to its Roots:

We also believe eBay should return to its roots in targeting its historical core buyer universe of
“self-expressionists and treasure hunters”, who are seeking unique, hard-to-find, or value-oriented
items. In addition, we believe there is untapped market opportunity in bringing the eBay platform
to existing marketplaces that have historically not utilized an online platform to drive commerce.
We believe that these are areas in which eBay can find success as an online marketplace. This
focus should also enable eBay to increase its assortment from product areas that have historically
had higher take rates and continue de-emphasizing the lower quality GMV that eBay focused on
as it began emphasizing its assortment of new, in-season merchandise over the previous few years.

[hioctane62]

IMO the only path forward to turn things around is to clean house at the executive level of eBay. The current mindset of profit over everything will hinder any possibility at improving the marketplace. They would also have to change the current climate of giving buyers anything they demand at the expense of the seller, so that we can list higher value items safely again.

BTW, any mods reading this... improving the marketplace IS a seller issue.

[gracieallen01]

Now, why is it that this sounds like the old 'good cop (Elliott), bad cop (Starboard)' routine.  Just waiting for Elliott to step in with 'the voice of reason'.