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  "documentTitle": "eBay Inc. (EBAY)",
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  "authorName": "Peter A. Feld",
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  "presentationDate": "2020-02-04 00:00:00",
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  "notes": "The slide uses a peer benchmark to justify a valuation gap, framing the separation as a value-unlocking event.",
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      "kind": "callout",
      "text": "After more than eleven months of a Strategic Review process, we believe management and the Board must drive the process to conclusion and commit to a separation of Classifieds.",
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      "text": "Classifieds Trading Multiples: EV / 2020E EBITDA",
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      "text": "EV / 2020E EBITDA: 22x",
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      "text": "In our view, eBay's Classifieds business is similarly attractive to many of these companies and would trade at a similar valuation if it were a standalone public company. Based on this financial profile and peer trading levels, we believe that a separation of Classifieds would unlock a tremendous amount of value for eBay's shareholders and create significant upside in the stock.",
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      "kind": "paragraph",
      "text": "For much of the last year, the Company attempted to rationalize maintaining the current portfolio structure by alluding to the fact that eBay gains 'a few hundred million dollars' worth of trade' by having Classifieds in the eBay portfolio.",
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      "kind": "paragraph",
      "text": "We also understand that part of the delay may have been caused by reluctance on the part of the former CEO. However, on the recent Q4 2019 earnings call, management stated that the Company 'anticipate[s] having an update to share about our Classifieds business by the middle of this year'.",
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      "text": "While we do not doubt there are challenges in a separation, most companies that determine a separation of a large business makes sense and is in the best interests of shareholders have found ways to solve these problems. We believe management and the Board must drive the process to conclusion and commit to a separation of Classifieds.",
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      "kind": "quote",
      "text": "anticipate[s] having an update to share about our Classifieds business by the middle of this year — eBay Management (Q4 2019 earnings call).",
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