eBay has announced it will commence a strategic review of the company’s assets, including StubHub and its Classified Group, following pressure from investors such as Elliott Management and Starboard Value.
In January, it was revealed in a letter to eBay that the activist investors believed the parent company should separate from StubHub to boost its stock.
It outlined a five-step plan to improve eBay’s “floundering” stock, including separating StubHub and its classified properties to focus on its core marketplace, which eBay has confirmed it will review.
“Over the course of the last two months, we’ve met with a number of shareholders to understand their views,” said eBay chief executive Devin Wenig. “The bottom line is that we all share common ground: we see tremendous opportunity ahead and want to see eBay’s full potential realised over the long-term. The initiatives we are announcing today are the result of this constructive dialogue.”
The company said it is also adding two new members to its board of directors, Jesse Cohn of Elliott and Matt Murphy of Marvell Technology.
Cohn said: “Our discussions with Devin and the board have been positive and productive, and we are pleased to have worked collaboratively to reach this agreement.
“We are confident that the initiatives announced today will drive meaningful shareholder value. Personally, I am looking forward to joining the board and working with my fellow directors towards our mutual goal of positioning eBay for success and value creation.”