January 22, 2019 / 1:34 PM / 9 months ago

CORRECTED-UPDATE 1-Elliott urges eBay to restructure business to double market value

(Corrects eBay’s market value to $30 billion from $35 billion in paragraph 8)

Jan 22 (Reuters) - EBay Inc shareholder Elliott Management Corp on Tuesday urged the e-commerce platform to restructure its business and sell some businesses to double its market value in the next two years.

The company’s shares were up 10.5 percent at $34.24 before the bell.

Elliott, which owns a stake of more than 4 percent in eBay, said the company could be valued at about $55-$63 per share in 2020.

EBay did not immediately respond to a request for comment.

In a letter to the board, the shareholder detailed a five-step plan, which included suggestions on margin expansion and capital allocation, and requested a meeting with the board in the near term.

The hedge fund asked the company to separate its franchises, StubHub and eBay Classifieds Group, from its core marketplace.

Elliott said online ticketing company StubHub could be valued at $3.5 billion to $4.5 billion and eBay Classifieds at $8 billion to $12 billion.

Ebay, which has a market value of about $30 billion, has lost a quarter of its value last year in the face of rising competition from Amazon.com Inc. (Reporting by Vibhuti Sharma, Arjun Panchadar and Munsif Vengattil in Bengaluru; Editing by Maju Samuel)

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