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Starboard Delivers Letter To EBay; Calls For Separation Of Classifieds Business

Starboard Value LP said it has delivered a letter to eBay Inc. (EBAY) to share its views publicly in order to voice the concerns of the shareholder base. Starboard, together with its affiliates, currently owns more than 1% of the outstanding common stock of eBay.

Starboard believes eBay has an opportunity to create significant shareholder value through the separation of eBay Classifieds Group. It stated that a comprehensive and aggressive operating plan must be put in place to drive profitable growth in the core Marketplace business. Starboard believes eBay must commit to a more stringent review of costs in the core Marketplace business.

"We believe eBay is deeply undervalued, with opportunities to create significant value for shareholders that are directly within the control of management and the Board," concluded Starboard.

Shares of eBay Inc. were up nearly 4% in pre-market trade on Tuesday.

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