StubHub

Elliott Pushes for Changes at eBay

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."

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.

Copyright AP - Associated Press
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