EBay Says Carefully Reviews And Evaluates Elliott's Proposals

(RTTNews) - eBay Inc. (EBAY) said that it appreciates Elliott Management's recognition of the strength and power of eBay's business and will carefully review and evaluate Elliott's proposals.

eBay said, "... we appreciate Elliott's recognition of the strength and power of eBay's business and will carefully review and evaluate Elliott's proposals. We look forward to the opportunity to engage with Elliott, as we do with all shareholders."

Earlier today, Elliott Management announced a 4% stake in the company and suggested a five-step plan for unlocking shareholder value, which included spinning out the company's classifieds and StubHub businesses. Elliott argued that eBay could fetch a valuation of $55 to $63 a share by the end of next year under its proposal.

"While we believe that execution missteps and unclear focus have impaired value, eBay is far from broken, and its future should be bright," Elliott said in a letter to management.

Elliott called eBay's core marketplace business "deeply undervalued" and said it could represent an attractive takeover target if it were more of a pure-play platform.