Elliott Management, which owns more than 4 percent of its stock, said in a letter to eBay that if it focused on its online marketplace and drop some other businesses.
NEW YORK (AP) — An activist shareholder said Tuesday that eBay would be better off without StubHub or its classified ads businesses.
Elliott Management, which owns more than 4 percent of its stock, said in a letter to eBay that if it focused on its online marketplace, the company could double its share price to more than $63 by the end of next year.
Shares of eBay Inc. jumped 8 percent in midday trading.
In a statement from its headquarters in San Jose, California, eBay said it will “carefully review and evaluate Elliott’s proposals.”
Most Read Business Stories
- Seattle is America's fastest-cooling housing market, Redfin says
- Rad Power Bikes puts the brakes on RadWagon 4 over safety concerns
- Starbucks adapts to market changes with focus on convenience
- Alaska Airlines reaches a milestone contract deal with its pilots union
- Airbus wins $4.8 billion China jet order in blow to Boeing
Elliott believes eBay’s classifieds business has a potential value of $8 billion to $12 billion, and put StubHub’s value between $3.5 billion and $4.5 billion.