EBay Inc on Friday announced a review of its StubHub and eBay Classifieds businesses and said it would appoint a director from Elliott Management to its board, as part of an agreement with the activist investor to avert a proxy contest.
The U.S. e-commerce firm will add Jesse Cohn, a partner at Elliott, and Matt Murphy, the CEO of Marvell Technology, to its board.
EBay will also begin an operating review and add a third new independent director later in the year, it said.
The company also signed cooperation agreements with Elliott and Starboard Value LP, another activist shareholder, under which the two investors have agreed to certain standstill, voting, and other provisions with eBay.
“Over the course of the last two months, we’ve met with a number of shareholders to understand their views,” eBay Chief Executive Officer Devin Wenig said in a statement.
Elliott, one of Wall Street’s busiest and successful activists, made a new bet on eBay in the fourth quarter and has been pushing for changes at the company, including a sale of its StubHub ticket sales and its classified-ads businesses.
StubHub on its own could be worth between $3.5 billion and $4.5 billion, and eBay Classifieds, which has an international footprint, could be sold or spun off and worth between $8 billion and $12 billion, Elliott said last month.
Shares in eBay rose 2.3 percent to $38 in early trading after the news.