(Reuters) – Activist shareholder Starboard Value LP on Tuesday sent a letter to eBay Inc’s (O:) board, saying the ecommerce company has not made enough progress in its plan to separate its classifieds business.
EBay last year agreed to sell its ticketing unit, StubHub, for $4.05 billion in cash, under pressure from Starboard and Elliott Management Corp. The investors had also urged the company to sell eBay Classifieds Group as part of a plan that could double the company’s value.
“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,” Starboard said.
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