On Friday, eBay said it sold its 28.4 percent stake in Craigslist back to the San Francisco-based online classifieds company.
The company also noted in a blog post that the deal also came with the agreement that all litigation between the companies will be dismissed.
Craigslist repurchasing of EBay's stake ends a rocky relationship between two of the Web's largest online marketplaces. In 2008, eBay sued Craigslist for diluting its stake in the company in a move that caused the online auction firm to lose its board seat. Craigslist later restored eBay's full stake, but an eBay representative was not reappointed to the board.
EBay bought the stake in Craigslist in 2004 for $32 million, paying $16 million to then-disgruntled shareholder Phillip Knowlton and $8 million each to Craigslist founder Craig Newmark and chief executive Jim Buckmaster. Former eBay CEO Meg Whitman said in 2009 court testimony that her company had long coveted Craigslist and tried to buy the whole site.
“We were very interested in making an acquisition of Craigslist, and we would have loved to have bought the whole thing,” she said in a Delaware courtroom during the lawsuit brought by eBay against Craigslist.
Friday's deal terms were not disclosed. A report from the AIM Group estimated that Craigslist generated profit of $269 million on revenue of $335 million.
EBay's shedding of its Craigslist stake comes before its anticipated split from PayPal . The marketplace company said it would spin off its lucrative payments arm in the third quarter of this year.