First came the news that Craigslist will charge for placing job postings on its site in selected markets. Now, there is a slightly more interesting development. Online auction giant eBay said it's
acquired 25 percent of Craigslist, the popular online venue where you can find everything from job and apartment listings, to the best places for sushi in Charlotte.
Internet companies have
drooled over Craigslist for some time now. The move by eBay signals the seriousness with which it's taking the online classifieds market; the fact that Craigslist is profitable was also a big draw.
Some estimates have Craiglist generating nearly $10 million in revenue this year. Online social networking companies that provide classified services are bound to be the next target for Internet
companies and portals.
The question is: Will the unconventional character of Craigslist change with the close involvement of eBay? Craiglist has a practice of charging only for those services
which its users find "appropriate." Apparently eBay says it won't change that philosophy.
Savvy newspaper companies with strong online presences ought to take heed of this deal and grab stakes in
companies like Craiglist where they can, before it's too late.