January 23, 2019 | Investopaper
EBay shares price surged by 12 percent on Tuesday after hedge fund Elliott Management Corporation reported that the multinational e-commerce could double its market value within two years.
To achieve this, the hedge fund company has urged eBay to sell or separate off two of its businesses. Elliott proposed the company to separate its ticket sales franchise StubHub and eBay Classifieds Group from its core marketplace.
According to Elliott, the company could increase its market value to $ 55-$63 per share by 2020 which stands at $34.78 dollar after it rose by 12 percent on Tuesday.
EBay later responded to the proposal by the hedge fund. The company said that it will review and evaluate the proposal.
To overcome competition from Amazon and other e-commerce sites, the US company has been hugely spending on product development, brand marketing, and website design lately.