Jamie Iannone will join in late April, returning to a company he
has worked at before
By Sebastian Herrera and Colin Kellaher
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 14, 2020).
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 Sebastian Herrera at Sebastian.Herrera@wsj.com and
Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 14, 2020 02:47 ET (06:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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