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EBay Took Craigslist Stake In Part To Block Google: exec
engine

WebmasterWorld Administrator engine us a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month Best Post Of The Month



 
Msg#: 4040870 posted 8:09 pm on Dec 10, 2009 (gmt 0)

EBay Took Craigslist Stake In Part To Block Google: exec [reuters.com]
An eBay Inc executive said on Thursday the auction company bought a stake in Craigslist partly to block rival web company Google Inc from acquiring the classified ads business."That was a consideration," said Garrett Price, who was eBay's principal deal maker in its $32 million agreement to acquire a 28.4 percent stake in Craigslist in 2004. He spoke under cross-examination in a trial taking place in Delaware.

Earlier in the week, eBay founder Pierre Omidyar said Craigslist's founder Craig Newmark seemed distressed by his dealings with an unnamed party that was in talks to buy a stake in Craigslist, but was "hostile to its mission."


 

Hugene

10+ Year Member



 
Msg#: 4040870 posted 9:31 pm on Dec 10, 2009 (gmt 0)

Yeah, not too sure about this. This is probably a BS statement from the eBay exec (sorry for the language). IMHO the main aim of the the Craigslist stake was to eventually acquire the whole site, they clearly say that in the article too.

Big corporations are good and needed (tens of thousands of employees to build Amazon or eBay, that's good jobs that are needed by the people) but haveing some small, independant and against the grain player is also good.

Congrats to Craigslist and I hope they remain independent, and huge while being small, for a long time.

walkman



 
Msg#: 4040870 posted 9:50 pm on Dec 10, 2009 (gmt 0)

32 million for 28% was a steal, google or no google. The site was valued at $1 billion a couple of years ago and profit is tens of millions a year.

mack

WebmasterWorld Administrator mack us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4040870 posted 9:52 pm on Dec 10, 2009 (gmt 0)

Its strange that in 2004 Ebay thought of Google as "the competition" yet still threw a large chunk of their online ad spend at Google.

Mack.

signor_john



 
Msg#: 4040870 posted 3:19 pm on Dec 11, 2009 (gmt 0)

Its strange that in 2004 Ebay thought of Google as "the competition" yet still threw a large chunk of their online ad spend at Google.

Maybe that was simply an attempt to weaken Google by diluting AdWords and AdSense with millions of CPC ads for "dead popes."

walkman



 
Msg#: 4040870 posted 6:36 pm on Dec 11, 2009 (gmt 0)

Or Google was their only option to get that much traffic and sales?

smartwork

5+ Year Member



 
Msg#: 4040870 posted 9:35 pm on Dec 11, 2009 (gmt 0)

profit is tens of millions a year

I've only used CL a little, but where exactly does their profit come from? What is their paid service?

walkman



 
Msg#: 4040870 posted 10:04 pm on Dec 11, 2009 (gmt 0)

Real estate listing, companies posting jobs etc

ergophobe

WebmasterWorld Administrator ergophobe us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4040870 posted 12:38 am on Dec 12, 2009 (gmt 0)

signor_john, I know you're joking, but really, honestly, I think all of the "buy dead popes" ads really did contribute to accelerating my paid listing blindness on Google. Of course, it mostly made me think that EBay was stupid.

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