eBay has sold its 28.4% stake in Craigslist back to the online classified advertising website, ending all legal battles.
eBay acquired a stake in Craigslist in 2004. The repurchase will result in the dismissal of all litigation between the companies.
A lawsuit was filed by eBay against Craigslist in 2008 saying that the advertising website has diluted its interest with a ‘poison pill plan’.
eBay said the move cost it a seat on the board, while Craigslist has accused the e-commerce firm of using confidential data to start its own classifieds site in the US.
The confidential settlement agreement marks the latest step by eBay to focus on its online marketplace business.
The company plans to spin off its PayPal payments unit business in the next quarter and divest its enterprise division.
Since joining eBay, PayPal claims to have handled 18 billion transactions and $1tn in payments, growing to serve 165 million customers across almost every country in the world.
Its split from eBay comes amid similar moves from other large technology firms in Silicon Valley, with Symantec and HP both set to dice up their companies in a bid to refocus and become more efficient.
