EBay sells back 28.4% stake in Craigslist

EBay says it has sold its 28.4 per cent equity stake in Craigslist back to the online classified advertising company. With the sale, all litigation between the companies would be dismissed, eBay said. The value of the stake in Craigslist, which is closely held, was not disclosed.

The deal is the latest step by eBay to focus on its online marketplace as it restructures.

It is scheduled to spin off its PayPal transactions business in the third quarter. It is also trying to sell its eBay Enterprise division, which provides warehousing, delivery and customer support to online merchants.

"This is definitely a presplit house-cleaning," said Kerry Rice, an analyst at Needham. "Eliminate peripheral businesses, focus on the core. I do not think Craigslist is important to eBay's future. I think the internet has passed Craigslist by." – (Bloomberg)