eBay is very well known as one of the leading businesses in the world and the marketplace that is used by millions of people worldwide. It is one of the globally most valuable companies for years, but it is facing certain difficulties in the past few years since Amazon and Alibaba slowly emerge as stronger rivals.
Last year, the company suffered one of the most influential changes as they decided to part ways with PayPal and supplant it with the eBay Managed Payments which just started operating in the US. Since PayPal was one of the strongest assets eBay had and was a brand name with its own weight that was significant on the global scale, it was clear that a major shift just happened.
The interesting thing is that the change happened shortly after one of the largest eBay shareholders Elliott Associates made their comments about it. Now, they have spoken again, and their words shook the company on a massive scale!
It appears that Elliott Associates is seeing eBay as too complex and not focused enough on the core aspects of the business, and their comments usually mean that something big is beyond the horizon. They have issued a statement pointing out five key steps that eBay has to take in order to consolidate its assets. This also includes somewhat negative comments on the way the company is managed at the moment.
It is to be expected that the eBay will continue to segment and part ways with some of its assets, but even more importantly – there are some hints that the management is about to undergo some serious changes as well.
This is the area where the company has already made certain moves in the past few months, and this kind of comment suggests that there are even more significant changes coming in.
The reaction from the eBay management itself also suggests something like that, as they issued a statement that they value the opinion of all their shareholders and that they will take these comments into consideration.
In the next few months, the things will become much clearer, but it looks like we are about to witness yet another major shift. Since eBay is still one of the strongest marketplaces worldwide, these changes will have far-reaching effects on everybody.
Submitted by Studioworx Marketing Team on 21/03/2019