EBay looking to UK classifieds

ONLINE auction giant eBay is eyeing Britain's lucrative classified advertising market as part of a global expansion plan centred on its purchase of internet group Craigslist.

The company has picked up 25% of Craigslist, an online forum for job vacancies, property sales and rentals and articles for sale.

Mainly US-focused Craigslist has expanded from its San Francisco base to 45 cities around the world and is now targeting UK cities including London, Birmingham, Manchester and Edinburgh.

Last month, the site crossed the one billion monthly page-views mark for the first time - doubling its traffic level of a year ago. Most of the ads are placed free and industry experts reckon Craigslist could have revenues of more than $100m (£54.3m) if it charged for job adverts across its whole network.

The site has been profitable since 1999 on making job advertisers in the San Francisco Bay area pay $75 a month.

Craigslist chief executive Jim Buckmaster said eBay would help Craigslist expand into overseas markets and develop non-English language countries, starting with Spain.

The firm said it also needed eBay's help to shut down overseas spammers and scammers who are said to plague its users. The relationship gives eBay 'insight into the classified trading model' said eBay spokesman Hani Durzy.

EBay came across the business idea when it was contacted by a former employee who wanted to sell his shareholding. It decided to make the investment only after Craigslist's other shareholders were assured that eBay would make no changes to the operation. EBay is believed to have paid around $15m for the stake.

Craig Newmark, who founded Craigslist in 1994, said the deal would have great benefits for his new partner.