It has been a long time since eBay Inc. (NASDAQ: EBAY) took an equity interest in Craigslist. About 11 years or so. Now eBay is selling its stake back to Craigslist. What may matter more than the actual dollars here is the reason eBay is severing its ties.
eBay paid between $12 million and $15 million for roughly a 25% stake back in August of 2004, according to SFGate.
As a reminder, eBay’s acquisition of PayPal in 2002 was initially valued at $1.5 billion. Back then, eBay’s revenue was approximately $266 million for the quarter, versus a PayPal guidance of revenues between $53 million and $54 million. The combined revenue for eBay, which still includes PayPal, is expected to be almost $4.5 billion for the June quarter.
The eBay news release on Friday was so small that it seems almost inconsequential to the company. eBay’s release simply said:
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