Craigslist Brought It On Itself?

I actually found a comment whereas the submitter mentioned that eBay is going to “eat Craigslist from the inside out.” After checking into this latest news about Craigslist being sued by eBay, I frankly believe that Craigslist quite possibly brought it upon itself… or did it?

Unlike the myth that Microsoft still owns Apple shares, which, back when they were outstanding, were non-voting shares only to be sold off a few years ago, eBay actually has a very real stake in Craigslist. Surprised? Well before outwardly blaming Craigslist for allowing this to happen, consider this.

“Mr. Newmark and the Craigslist CEO Jim Buckmaster said in separate messages posted on the Web that they never imagined a stake in Craigslist ending up in the hands of a publicly-traded company. Still, the former Craigslist executive made it clear to the company that he intended to sell his shares and began approaching other parties, including eBay. “

So who is really telling the truth? If it was me, I think I am going to lean with the non-publicly traded, undervalued company run out of a large house. Why? Read closely…

“eBay’s motivation could also partly be defensive, allowing it to keep a stake in Craigslist out of a competitor’s hands and giving it the chance to acquire the remainder of Craigslist should the company’s founders decide to sell, according to a person familiar with the matter.“

But this comment is dated as of 2004 - a lot has changed since then, including a better understanding why so many are seeking to do business with Craigslist - it’s generally free to use and would not really recoup the other 75% of investment. Another possibility is that it might simply be cheaper to sue the company silly later on…

Today’s eBay is full of honest sellers and crooks alike. The same can certainly be said for Craigslist. But because one of these companies encourages face-to-face sales, over that of having a product shipped to you, it seems that Craigslist stands to be a better avenue for many sellers and buyers looking not to be ripped off through the mail.

Is Craigslist in real trouble here? It is entirely too early to tell for sure. One thing is for sure, eBay is hiding something and the winner will be the one with the best legal team.

Tags: craigslist, ebay, lawsuit