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Ebay CEO to step down

Posted Jan 22 2008, 03:22 PM by Kim Peterson
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EBay chief executive Meg Whitman will retire from the post soon, the WSJ reported today. And that means eBay is at the most critical point in its history. The retirement news isn't a surprise; we discussed the idea of her resignation earlier this month. Whitman, 51, has been giving her top executives more responsibilities recently and could be grooming one to replace her.

EBay investors weren't too thrilled today. The company's shares fell more than 4 percent to close at $27.13. I thought the market would react more favorably, considering that eBay's share price has dropped by almost a third since October.

Whitman's legacy has some black marks, such as the overpriced Skype acquisition and the increasing anger among a user base irritated by high fees. I don't think she's done enough to improve the user experience, and as a result companies like Amazon have become a serious competitive threat. But what outshines those flaws is this: Whitman has kept the company growing and profitable, which is exactly what a CEO should do.

The person eBay's board appoints as successor will say a lot about how the company views itself. The WSJ speculates that John Donahoe, the president of eBay's stagnating auction business unit, is in line to replace her. If Donahoe is promoted, eBay's board is probably looking for more of the same from the company's leadership -- and honestly there isn't much wrong with that.

But bringing in someone fresh would signal that eBay is ready for a change. Ready to abandon its cautious, conservative approach and become more than an auction site. Ebay has huge potential to expand into new areas, and those moves, while risky, could revitalize the company.

Ebay's quarterly results are out tomorrow. Perhaps we'll find out more about a Whitman resignation then. 

Update: The news is out (click here for more detail). Whitman is leaving in March but will remain on the board. In a conference call today, she said, "It's time for eBay to have new leadership, a new perspective and a new vision." Donahoe will be the new CEO, and in the same call said he'll make eBay easier and safer to use.

Here's what others have to say about the news:

NYT Bits:  "Ultimately, if Ms. Whitman’s strength was her conservative ability to give the eBay auction concept a chance to grow and achieve its potential, there may be a strong case for a need for change."

Digital Daily: "Certainly she leaves a storied career behind her. She led the company through its 1998 initial public offering, and from there through some 40 quarters of sequential revenue growth. An impressive achievement by any measure–Skype acquisition be damned." 

Silicon Alley Insider: "We think the move will be good for eBay's stock price and, likely, good for eBay. Meg had a strong run, especially in the early years, but eBay has lost its strategic focus, and we think the company will benefit from having a new leader. " 

Seeking Alpha: "Whitman has been an emblematic leader for eBay but I also think the time has come for a change in leadership. The earlier this change comes, the better." 

BloggingStocks: "Ms. Whitman has done an admirable job as CEO of the company, as evidenced by the stock's strong performance since its IPO. But over the past five years, shares of eBay have provided essentially flat performance as the company struggles to find ways to deal with slowing growth in the auction business." 

Comments

 

I love Ebay! It is a great venue for buyers looking for that hard to find item at a decent price. The problem begins when you want to become a seller. You will pay Ebay and it's subsidiary company PayPal three (3) times to sell one item. A listing fee and a percentage of the selling Fee to Ebay and if used, a final value fee to PayPal. Don't forget that you must "apply" to have your profits sent from your PayPal account to your local bank if over $500 a month.

This setup of fees is why I see alot of sellers who will not accept PayPal as a payment with high dollar items simply because they do not wish to pay the percentage of their sold item......... "again" to PayPal (Ebay). A simple fixed rate fee (or the actual cost of an electronic bank transfer) on items that sell for $100 dollars or more would bring the sellers back to PayPal with the ease, quickness and security of the transactions that PayPal is known for.

How much money has E-Bay and Paypal lost by refusing to list firearm parts and let outside firearms dealers use the paypal services????????????

Fees are certainly way to high. Get someone that can keep the fees at a min. and still make a profit for Ebay.

The seller must up the price of items to be sold and half the time if the item is too high , well, no bids. too , too, high

When is she leaving?? The sooner the better , I say.

Fees are killing my profit and paying overly high wages to people like her that work for Ebay.

I tried to sell on Ebay a few years ago. I received a bill of $500.00 for fees to list and final value fees for sold items. Well I never sold anything and the items that were sold to a customer turned out to be fraud or the customer never paid for it. But I was charged for it.I even contacted Ebay about it and didn't hear a thing. I stopped dealing with Ebay, I hope some changes will be made to the fees they charge. It's aweful. I liked selling on Ebay, and hope someday to do it again,but not until some BIG changes are done with their fees!  I hope the new CEO isn't as greedy.

There is noone to contact at ebay by phone, therefore I have had my ebay account stolen and whenever I log on it says I changed password and had purchased and I never used this account. I need a contact that I can be assured they do represent ebay. I asked them to remove me from all records and this still has not been done.??

This was supposed to be a good place for the "little" guy to supplement his income in these trying times, but still the "little" guy is struggling and only making E-Bay richer by paying these HIGH FEES from time you start to list your item all the way up to selling it, and then finally as a final kick to the groin, when PayPal takes their fee out when the buyer uses them to pay.  Give us a break, let us get some of the cash too.

Ebay do care only about fees and not the quality of sellers. Fraud/piracy are rampant and no one can seem to stop them.

It would be nice to have free listing than charged only when you sell.  Many sites are doing that. The fees they  charge to sell are not out of line I have 1300 items in my store and would add about 3000 more but just can't afford the three fees they get. Ebay ends up making more money than most of the sellers do.

Boo-hoo-hoo for the sellers. The fees are the cost of doing business. What you have done is to jack-up your shipping and handling fees to an exorbitant level gouging the buyer to compensate for your additional expense. There are other venues out there.

Granted, E-Bay needs to dance with who brung them. Hope that the change is for the better.

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