This morning, Craig Newmark explained in his blog how EBay has managed to acquire minority interest in Craigslist.
“So, with the idea of establishing checks and balances, mostly on myself, I made a gift of some equity in Craigslist to a guy who was working with me at the time … Well, the guy later left the company, and decided to sell his equity, which I learned he had every legal right to do.”
That guy sold his equity to Ebay, and there you have it folks. The checks and balances worked. The former Craigslist employee got a big check and his balance went way up.