Jim Buckmaster, the CEO of Craigslist, sat silently in a Delaware courtroom all of last week listening to eBay's witnesses testify as part of a corporate governance lawsuit it had brought against the online classified site last year. After Craigslist founder Craig Newmark testified for hours on Friday, it was Buckmaster's turn, and it seemed he had a lot to say.
Mr. Buckmaster revealed that in 2007 - 3 years after eBay had purchased a 28 percent stake in the company from a disgruntled shareholder - he sent an email to then eBay CEO Meg Whitman to see how the two companies could part ways, stating that he felt uncomfortable about eBay's decision to launch Kijiji, a competing site, in the U.S.
Mr. Buckmaster got a reply - two weeks later. He spent much of his time on the stand explaining his reaction to Ms. Whitman's response to his letter, a response that led to the actions the Craigslist board took that ultimately led to last week's trial.
While he and Mr. Newmark felt eBay's involvement with Craigslist was anything but a match made in heaven, Ms. Whitman wrote, "We are so happy with our relationship with Craigslist that we could neither imagine doing anything to disturb our personal rapport with you or Craig, nor parting with our shareholding in Craigslist under any foreseeable circumstances. Quite the contrary, we would welcome the opportunity to acquire the remainder of Craigslist we do not already own whenever you and Craig feel it would be appropriate."
According to Ms. Whitman, who had testified on Monday, others drafted the response, and when asked if it had been reviewed by legal department, she said, "I imagine it was."
Just before the trial concluded for the week at 5 pm on Friday afternoon, Craigslist's attorney read aloud an email an eBay executive had written to his colleagues informing them of his first meeting with Mr. Buckmaster in May 2004. "Jim is an oddball character," he stated, and went on to call him smart but lacking social skills, said he was not well traveled, and lacked a driver's license.
It was clear from last week's testimony that eBay's executives had tried their best to acquire control of Craigslist so they could monetize the site, and were not only frustrated by Craigslists' Newmark and Buckmaster's commitment to put community ahead of monetization, but appeared disdainful as well.
Craigslist lawyer Ed Wes of Perkins Coie will testify after Mr. Buckmaster, and then both sides will call experts to the stand.
Link to Thursday and Friday's Coverage from AuctionBytes
Craigslist Founder Stays Cool Under eBay's Hot Cross Examination (link)
Craig Newmark Takes the Stand in eBay v Craigslist (link)
Both eBay and Google Wooing Craigslist in 2004 (link)
Newmark: Google and Warburg Pincus Vied with eBay for Shares in Craigslist (link)