EBAY eBay Inc

By Colin Kellaher and Matt Grossman 

EBay Inc. named Jamie Iannone its new chief executive Monday, in a move that will provide the e-commerce pioneer an industry veteran as it tries to reignite growth during a tumultuous period.

Mr. Iannone, who will join eBay on April 27, was most recently the chief operating officer of Walmart Inc.'s e-commerce division. He has also served as the CEO of SamsClub.com, the e-commerce arm of the company that runs Sam's Club warehouse stores. Mr. Iannone previously worked for eBay from 2001 to 2009, including as a vice president.

"Jamie has consistently delivered high growth during rapid periods of industry disruption, consumer change and technological advancement," said eBay's chairman, Thomas Tierney.

Mr. Iannone is tasked with turning around a legacy Silicon Valley company that, even before the coronavirus pandemic, has struggled for years to compete with its much larger rival Amazon.com Inc. as its online marketplace has trudged along in a fast-growing e-commerce industry.

Chief Financial Officer Scott Schenkel has led the company since the September resignation of Devin Wenig, who left last year amid a disagreement with the company's board. Mr. Schenkel will continue in that role until Mr. Iannone takes over later this month.

"In the past few weeks it became clear that I was not on the same page as my new board," Mr. Wenig wrote on Twitter at the time of his departure. "Whenever that happens, its best for everyone to turn that page over."

Activist investors Elliott Management Corp. and Starboard Value LP have pressured eBay to re-evaluate its business, including suggesting that it be broken up. Starboard said in February it owns more than 1% of eBay shares, while Elliott has reported ownership of more than 4%.

Last year, eBay agreed to add three new board members after reaching agreements with Starboard and Elliott.

Recently, Starboard has pushed for additional board representation and urged eBay to search for an external CEO.

EBay has considered selling its classified-advertising business, which could be worth $10 billion, The Wall Street Journal has reported. In February, eBay closed the sale of its StubHub ticket-sales unit in a $4.05 billion deal with Viagogo Entertainment Inc.

The same month, a takeover bid by the owner of the New York Stock Exchange fell through after the exchange operator's investors balked at a potential deal.

Mr. Wenig, who had helmed the company for more than four years, stepped down amid disagreements with the board about the sale of assets. His departure was one among an exodus of eBay leaders during the past year.

EBay, which recently lost its place to Walmart as the nation's second-largest online retailer by share of online sales, according to eMarketer, has seen its revenue growth shrink and has sought to shed its image as an auction site while not having the capacity to compete adequately with Amazon, America's largest online retailer. EBay spent years growing through acquisitions that most notably included its 13-year ownership of PayPal Holdings Inc. The value of the payments platform, which spun off in 2015, is now more than four times eBay's.

In January, eBay reported a decline in profit and gave a weaker first-quarter revenue outlook, anticipating $2.55 billion to $2.60 billion, below analysts' estimates of $2.64 billion.

Last year, eBay bought back $5 billion of its shares after pressure from investors. In January, board members approved an additional $5 billion toward stock repurchases. Yet despite the buybacks, eBay's stock price had stayed relatively flat, even before the recent stock market crash caused by pandemic.

While some investors expected Mr. Schenkel, a longtime eBay executive, to remain as CEO, some said Mr. Iannone's appointment shows the company's desire to focus on its marketplace, even as executives have said a potential sale of the company is possible.

"He has a lot of credibility," said Charles Norton of Penn Davis McFarland Inc., an eBay investor that owns more than $9 million in shares. "Walmart's e-commerce business, especially during this [pandemic] period, we've seen them do very well. Hopefully he can bring innovation and ideas to the table at eBay."

EBay has been trying to boost revenue through new advertising and payments initiatives. The company has also tried to lure more sellers by eliminating some fees. Last year, the company started a shipping service for its largest sellers.

Mr. Iannone, who spent the early part of his career starting the first product-marketing team at eBay and overseeing shopping experiences, spent four years as president of digital products at Barnes & Noble, Inc.'s Nook before joining Sam's Club.

Walmart's president and CEO of its U.S. business, John Furner, said Monday that Mr. Iannone would be replaced at a later time.

Write to Colin Kellaher at colin.kellaher@wsj.com and Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

April 13, 2020 14:55 ET (18:55 GMT)

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