Elliott Management on Ebay

https://enhancingebay.com/content/uploads/2019/01/Elliott-Management-Letter-to-eBay-1.pdf

Baupost purchases near $27 as well in late 2018

Dear Members of the Board:

I am writing to you on behalf of Elliott Associates, L.P. and Elliott International, L.P. (together, “Elliott” or “we”). Elliott beneficially owns over 4% of eBay Inc. (the “Company” or “eBay”), making us one of the Company’s largest investors. At approximately $1.4 billion in market value, this sizeable investment demonstrates our strong belief in the value opportunity at eBay.

The purpose of this letter is to share our perspectives as a large shareholder and provide our specific thoughts on how eBay can become a better and more valuable company. Elliott believes that by taking steps to unlock strategic value, refocus on the core Marketplace and improve execution – a plan we call “Enhancing eBay” – the Company will grow faster and deliver meaningful operational improvements. As a more focused and efficiently run business, we believe eBay can achieve a value of $55 to $63+ per share by the end of 2020, representing upside of more than 75% to 100% within the next two years.  (Prove to yourself via the 10-K)

Our letter today is organized around the following themes:

eBay as a Public Company: We review the Company’s remarkable history as well as its need for substantive change to remedy its prolonged underperformance. ‒ The Enhancing eBay Plan: We analyze the opportunities for the Company to create significant upside and detail an actionable set of initiatives to unlock trapped value, improve execution and enhance oversight. ‒ A Unique Value Opportunity: We quantify the significant value these steps will create.

One response to “Elliott Management on Ebay

  1. Benjamin blok

    Thanks for sharing this. Interesting to see how Elliott uncovers undervalued business activities and how eBay can unlock the values (spinoff/divestment)

    They have more letters on other companies but haven’t read those yet.

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