EBay bought 25% stake in Craigslist, as founder Craig commented in his
blog. This is
not your usual "community effort sold out to big corporation" story. It
begins when craigslist first established as company, Craig made a gift
of some equity to a guy who was working with him at the time. He reasons
that the equity really had more symbolic than actual dollar value. Given
the success of craigslist, this is probably self-deprecation. Indeed,
this person latter left the company and decided to sold his stake to
eBay. The irony is this person is going to make all the monetary gain
while Craig would likely to shoulder all the criticism.
Being a for-profit company or owned by big corporation is not
necessary a bad thing. People need to make a living and an office need
money to run. Even slashdot.org a
fervently independent outlet is now owned by VA Software. But craigslist has made a
name of itself by strongly resist to commercialize. The web design is
basic and text only, entirely free from advertisement. All services are
free with the exception of job posting as its sole income. Had it
decided to brought in venture capital, craigslist has every potential to
be a contender to eBay, a 50 billion dollars corporate giant. But it
choose to stay this way, running like a struggling non-profit, forgoing
the dream of uncountable wealth.
While it might look a mistake now that he gave away equity to
a person who later sell to big corporation and profited, I believe he
acted in the interest of the organization at that time. He understand
the website that bears his name is more than himself. By making some
form of employee ownership he could make it a better and more
accountable organization.
I can only hope the ownership change will strengthen craigslist's
service without straying it from its mission. No matter what it is going
to be, craigslist has already made its name as an antidote to the dot-com
frenzy.
2004.08.13 [business] - comments (0)