Submitted by Brandon L05.08.2008
There is a lot of merger and acquisition activity in 2008. It is no secret that eBay has taken a stake in the online site Craigslist. eBay may go hostile – due to the past conflicts with the dilution of eBay’s ownership in Craigslist.
"Craiglist later took steps to reduce eBay's stake. In December, 2007, and January, 2008, Craigslist changed its bylaws to dilute eBay's ownership to 24.85% (from around 28%), removing its right to appoint a Craigslist board member" (Businessweek).
With 10 Billion pages views per month – it’s a nice target for eBay. For now, Craigslist is not for sale – but as eBay increases its ownership – it is only a matter of time. A wager in favor of is: a bet that eBay will hold a majority stake (51%) in Craigslist by the end of 2008.
Editor's note: We're approving this prediction, which is especially intriguing in light of Craigslist's announcement today that it is countersuing eBay. Brad Stone has a nice piece on the situation which says quite appropriately "It's war, then." Hostile indeed! Will be interesting to see how this plays out.
Suggested Odds50.00%
Prediction Close Date:12.31.2008 (EST)
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Comments
By "fully acquire" can we assume you mean that eBay will - at a minimum - attempt to gain control of 51% ownership? I would modify this prediction slightly to state that eBay will make a public bid to acquire Craigslist, but I wouldn't make a favorable judgment contingent on the success of that bid in 2008.
So, in my view the title would read "eBay announces bid to acquire Craigslist," then I would modify your rules ever so slightly. (Note: You have the power to edit your own Suggestion.)
I'm liking this Suggestion/Prediction.
thanks eric, I made the changes.
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