Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2007, eBay started an online classifieds business called Kijiji, which was designed to compete with Craigslist, the most widely used online classifieds website in

In 2007, eBay started an online classifieds business called Kijiji, which was designed to compete with Craigslist, the most widely used online classifieds website in the United States. At the time that it started Kijiji, eBay own 28.4% of Craigslist and was one of only three stock-holders. As a result of choosing to compete with Craigslist and pursuant to the Craigslist stockholders' agreement, eBay lost certain contractual consent rights and the right of first refusal over the shares it owned. The other two stockholders asked eBay to sells its shares back to the company or to a third party, but eBay refused. The two stockholders responded, in their capacity as directors, by (1) adopting a plan that restricted eBay from purchasing additional Craigslist shares and hampered eBay's ability to sell its shares to third parties, (2) implementing a stag-gered board to make it impossible for eBay to unilaterally elect a director to the Craigslist board, and (3) seeking to obtain a right of first refusal in Craigslist's favor over the shares eBay owned through a scheme that reduced eBay's ownership in Craigslist from 28.4% to 24.9%. eBay sued, asserting that the other two stockholders had breached the fiduciary duties they owed eBay as a minority stock-holder. What was the result? [eBay Domestic Holdings, Inc. v. Newmark, 16 A.3d 1 (Del. Ch. 2010).]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Health Policy And Law

Authors: Sara E. Wilensky, Joel B. Teitelbaum

5th Edition

1284247457, 978-1284247459

More Books

Students also viewed these Law questions

Question

1. Too understand personal motivation.

Answered: 1 week ago