Although Craigslist originally said that it couldn’t respond to the allegations made in eBay’s lawsuit against the company, it seems that Craig and/or Jim couldn’t help themselves: the Craigslist blog has a post up entitled “Kettles and Pots” which notes that many of the things eBay is accusing Craigslist of doing are things that eBay has either also done with its own shares, or has previously argued should be done with Craigslist shares. For example, the Craigslist blog argues that eBay has:
- Set up a “shareholder rights agreement” or poison pill.
- Tried to get a “right of first refusal” on Craigslist shares.
- Implemented an indemnification agreement for eBay officers.
- Set up staggered board elections.
Of course, as at least one commenter on the post has noted, eBay is a large public company with freely-tradeable shares and a broad public ownership. Craigslist is the opposite: a private company with only two major shareholders and a board consisting of… wait for it… those same two major shareholders. Even if the things it implemented were identical in every way, those facts would be enough to change the picture, since there are protections for minority shareholders even in private companies. I think Craig and Jim are going to have to do better than that. For more thoughts on the eBay lawsuit, read my previous post.