eBay Domestic Holdings, Inc. v. Newmark
Delaware Court of Chancery
16 A.3d 1 (2010)
Craig Newmark (Craig) and James Buckmaster (Jim) (defendants) owned approximately 71.6 percent of the shares of craigslist, Inc. (craigslist). eBay Domestic Holdings, Inc. (eBay) (plaintiff) owned the remaining 28.4 percent. Craig and Jim strongly wished to maintain craigslist as a community service, as opposed to a profit-making corporation. eBay wanted craigslist to earn a profit. Craig and Jim entered into a voting agreement, forming a group that could elect a majority of craigslist’s board of directors. Craig and Jim were concerned that after they passed away their heirs would sell inherited craigslist shares to eBay, resulting in a change to Craig and Jim’s desired community-service culture. To protect against this possibility, Craig and Jim implemented a stockholder rights plan. eBay brought suit claiming that Craig and Jim violated their fiduciary duties to eBay by implementing the rights plan.
Rule of Law
Holding and Reasoning (Chandler, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.