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EBAY DOMESTIC HOLDINGS, INC. v. NEWMARK

Civil Action No. 3705-CC.

16 A.3d 1 (2010)

EBAY DOMESTIC HOLDINGS, INC., Plaintiff, v. Craig NEWMARK and James Buckmaster, Defendants, and craigslist, Inc., Nominal Defendant.

Court of Chancery of Delaware.

Decided: September 9, 2010.

Attorney(s) appearing for the Case

William M. Lafferty , Eric S. Wilensky , Amy L. Simmerman , Pauletta J. Brown , and Ryan D. Stottmann , of Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware; of Counsel: Michael G. Rhodes , of Cooley Godward Kronish LLP, San Diego, California, Attorneys for Plaintiff.

Anne C. Foster , Catherine G. Dearlove , and Brock E. Czeschin , of Richards, Layton & Finger, P.A., Wilmington, Delaware, Attorneys for Defendants Craig Newmark and James Buckmaster.

Arthur L. Dent , Michael A. Pittenger , Berton W. Ashman, Jr. , and Meghan M. Dougherty , of Potter Anderson & Corroon LLP, Wilmington, Delaware; of Counsel: H. Michael Clyde and K. McKay Worthington , of Perkins Coie Brown & Bain P.A., Phoenix, Arizona, Jason A. Yurasek and Joren S. Bass , of Perkins Coie LLP, San Francisco, California, Attorneys for Nominal Defendant craigslist, Inc.

OPINION

CHANDLER, Chancellor

On June 29, 2007, eBay launched the online classifieds site www.Kijiji.com in the United States. eBay designed Kijiji to compete with www.craigslist.org, the most widely used online classifieds site in the United States, which is owned and operated by craigslist, Inc. ("craigslist" or "the Company"). At the time of Kijiji's launch, eBay owned 28.4% of craigslist and was one of only three craigslist stockholders. The other...

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