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Craigslist has responded to a lawsuit filed by eBay, noting that it "came to us out of the blue," according to a posting on its craigslist blog Tuesday.

The popular online classified-ad site issued its response after eBay on Tuesday filed a lawsuit, alleging that its 28.4 percent stake in Craigslist was diluted by more than 10 percent in January. eBay, which acquired its minority stake in 2004, submitted its lawsuit under seal and, as a result, few details are readily available.

Craigslist said it was surprised by the action, stating that eBay had not attempted to discuss the matter with the company prior to filing its complaint.

"Coming from a shareholder that views craigslist as a prime competitor, filing suit without so much as mentioning these assertions beforehand seems unethical, and hints at ulterior motives," Craigslist notes in its blog.

And what ulterior motives could Craigslist be referring to? The company alleges: "eBay has absolutely no reason to feel threatened here - unless of course they're contemplating a hostile takeover of craigslist, or the sale of eBay's stake in craigslist to an unfriendly party. In which case, they're out of luck."

Craigslist, however, is not a publicly traded company, so a "hostile takeover" is a less likely route. eBay selling its stake to another party may be something worth keeping an eye on, given that's how eBay came into its Craigslist stake in 2004.

Craigslist could see revenue of more than $80 million this year, which would be a 47 percent rise from an estimated $55 million for 2007, according to projections in a new report from consultancy Classified Intelligence.

The popular mostly free online classifieds site could easily double that amount, and better compete against eBay's Kijiji.com and other rivals, if it added more fees, the report concluded. (eBay also owns 25 percent of Craigslist.)

"They could get up to $200 million in a heartbeat and it would improve Craigslist with very little backlash, but they're not about the money, so it is irrelevant to them," Peter Zollman, founder of Classified Intelligence, said in an interview.

Because it is private, Craigslist isn't required to publicly disclose its financial results.

Asked to comment on the report, Chief Executive Jim Buckmaster said the company doesn't comment on "financial guesstimates."

Classified Intelligence says it came up with the revenue estimates by studying postings for one week in January and one week in March and then doing the math.

Craigslist is free to use, except it costs $25 to $75 for recruitment listings in some markets and $10 for apartment ads placed by brokers in New York City.

The site is by far the leader in the online classifieds space, exceeding 9 billion page views, 30 million new classified ads and 2 million new job listings each month, according to the report. The number of unique visitors to Craigslist was 26.6 million in January, up 75 percent from a year earlier, according to ComScore.

The report also referred to Craigslist's "sleaze factor" and said the anonymity it allows is attractive to criminals, including thieves who post fake ads that someone else's property is free, people using the site offering or seeking prostitution and end up getting carjacked and even murder-for-hire.

However, Zollman acknowledged that even traditional newspaper classifieds were used by fraudsters and other criminals. And at least some of the criminal cases have been solved after authorities traced the IP address to the computer used to post the listing.

In the recently launched official Craigslist blog, a post from March 29 says the site has implemented a phone verification system for its "erotic services" category which helped cut ads for that category by 80 percent.

"Misuse of Craigslist for unlawful purposes is unacceptable to us, and we will continue to look for additional ways to eliminate it, while preserving full functionality for the overwhelming majority of well-intentioned law abiding Craigslist users, including those who use our "erotic services" category," Buckmaster wrote.

Auction giant eBay has launched an online classifieds service that will compete with market pioneer, Craigslist.

Kijiji, a site eBay has operated overseas for two years, is now available in about 220 cities across the United States, spokesman Hani Durzy, said Tuesday.

"We're targeting young people and young families looking for bargains locally," Durzy said. "For now it's a free service and our focus is on building the user experience."

Reached by phone, Craigslist founder Craig Newmark sounded less than worried about competing against a powerhouse like eBay.

"My take is that anything that helps community is a good thing," Newmark said.

At the very least, the move by eBay marks a strange turn in the relationship between eBay and Craiglist. In 2004, eBay acquired a 25-percent stake in Craigslist and controls a seat on the three-person board.

At one time, the board consisted of Newmark, Craigslist CEO Jim Buckmaster and eBay founder Pierre Omidyar, who was replaced by another eBay representative.

"I think Craigslist has been an incredible success but we think there is market for more players," Durzy said.

Asked about what eBay may have planned for its Craigslist stake Durzy said: "We have a minority ownership and that's not going away. We're happy with that investment, both financially and strategically."

A San Francisco Craigslist posting is offering to supply "diversions" that will allow buyers to cut in line for the iPhone, and sadly, we're afraid he might not be joking.

"Why pay someone else big $$$ to wait in line if the only thing between you and the front of the line is a good diversion?" the post asks, claiming to come from a trademarked company called "Over Here, Jerks." "Our tactics are guaranteed to be safe, effective and even humorous!"

Photos accompanying the posting include a giant clown bicycle, a scary-looking bear, a two-headed snake and a piece of poop.

The advertisement goes on to stress that "services are not limited to lines! Want to kidnap your neighbor's obnoxious dog? Glue your boss' furniture to the ceiling? Enjoy our bulk discounts on tranquilizer darts and industrial-strength adhesives."

Looks like somebody watches The Office too much.

Whenever something's a legitimate social phenomenon these days, you can typically follow the zeitgeist on Craigslist. The impending Apple iPhone is no exception.

I was inspired by a recent Cult of Mac post to hunt on Craigslist for some of my favorite "Buy me an iPhone!" or "I'll buy you an iPhone!" ads, which I've detailed below. Interestingly enough, they were restricted to the biggest of big cities, as far as I could tell (New York, Los Angeles, San Francisco, Chicago, Boston) and I could track down only one that promised a genuinely wacky trade (White Stripes tickets for an iPhone).

Nevertheless, I think it's safe to say that things will be kind of nuts starting around 6 a.m. on Friday. Maybe even earlier.

Easier money than forwarding that chain letter? (Santa Monica, Calif.)
iPhone LineSitter Wanted - Easy $. "I am looking for several people who will wait in line for me to buy the new Apple iPhone on Friday, June 29...You need to be reliable, mature, and patience will definitely be a plus! What you do while you're in line is your business, but unless you devise a foolproof strategy, you cannot leave the line."

Wow, Jack and Meg just got shafted (Chicago, Ill.)
TRADE: WHITE STRIPE TICKETS BOTH SHOWS SATURDAY AND SUNDAY - $1. "Got a few extra tickets for the BOTH White Stripes, total of 10 extra tickets. I brought them on the presale, so they being ship to me. I am looking for an Iphone. I am going , and new to chicago so will be going alone. so 10 are up for grabs...10 tickets for an iphone. STRAIGHT UP! which is RETAIL for RETAIL. so it is fair. if nobody has an iphone for trade might look for something else. but i want an iphone. not sure what white stripe tickets are selling for, but they did soldout very quickly."

Oh, the opportunism (SoHo, N.Y.)
Apple iPhone - For Sale. "I will be buying a few iPhones next Friday, June 29th...I am charging approximately $150 over the cost of the iPhone (with tax)...4GB iPhone: $700...8GB iPhone: $800...When the initial batch of iPhones are all sold, the prices will jump considerably, so reserve one with me now. I am honest and reliable." Yeah, but aren't they only going to let you buy one?

The bidding war is on (New York, N.Y.)
Wait in line for Iphone for me! "I need someone to wait in line for an iPhone for me. The iPhone is supposed to go on sale Friday June 29th at 6pm. You could wait in line at any of the three Apple Stores on Long Island (Smithtown Mall, Walt Whitman, or Roosevelt Field)...I'm not sure when you need to be in line, but I will find out this week." The bidding's on at DoMyStuff.com. Doesn't look like you'll really make a whole lot of bank on this one.

This is what sick days are for (Cupertino, Calif.)
I want an iphone, but i cant skip work. "I want an iphone! but I cant skip work. I'm looking for someone willing to stand in line for me starting thursday afternoon, camp out, and trade spots with me around 4-5pm friday...It seems like the asking price for people to stand in line is 200-300 dollars (however i have seen offers for 150). but I want to make SURE that i get one, and I'm pretty much willing to pay the 200-300 extra for it...contact me and make me an offer - if i dont get any, i may have to camp out myself and just get in trouble with work :)"

WEDNESDAY MORNING?!? (New York., N.Y.)
Updated: Get Paid To Wait In Line... For An iPhone (Midtown). "Ok, so here's the deal. I need an iPhone. Like, really need an iPhone. It's so bad, I've taken to carrying around my paper cut-out just to get used to the size...ANYWAY, I'm looking for 1 or 2 industrious folks to setup camp outside the 5th Avenue Apple Store 6:00am, Wednesday the 27th until 6:00pm on Friday the 29th. That's 60 hours of chilling and doing nothing... and getting paid...Interested applicants should have experience waiting in line. You are responsible for any supplies, food, etc. that you may need during your stay. If you want to be considered for this rather bizarre, very odd, and slightly fun assignment, please get in touch right away..." The post then links to the Gridskipper camp-out guide.

Professional? Do you have references? (Dedham, Mass.)
Professional Line waiter for Iphone - $250. "Attention all apple fanboys/girls, are you interested in the apple's newest gadget, the iPhone? Do you want to avoid the long lines, and be reserved a spot near the front? Well I am offering the perfect service for you: I will arrive at the Dedham at&t at whatever time you request, starting from 6 p.m thurday night, to anytime after that. My fee will depend on what time you have me start at, anywhere between $250 and $300. At sometime around 5:30, we will swap places, allowing you to be near the front! Here is how payment will work, meet me there when I am starting my campout, and pay me half. After that, at around 5:30, you will give me the other half, and we will switch spots in line. Please respond." If he's a professional, I want to see documentation that he managed to get a PS3 on opening night.

OK, we know you want an iPhone (Deer Park, N.Y.)
Need placeholder for overnight at AT&T before iPhone release. "I want an iPhone. I need someone to go to the AT&T store on Deer Park Ave. in Deer Park on Thursday PM 6/28 and wait until I come about 8 AM Friday morning to take the place in line. I would meet you at the store the PM before."

Your mission, should you choose to accept it (Santa Monica, Calif.)
Looking for someone to wait in line for an iPhone. "I am looking for someone who can wait in line for me to buy the new Apple iPhone on Friday, June 29 - I have to travel for work that day, or I'd be out waiting myself. Our target is the Apple Store at the Third Street Promenade in Santa Monica. The gig starts at 5am and ends at about 5pm. You need to be reliable and focused on the success bonus...Let's make this happen." This message will self-destruct in 30 seconds.

You're still going to have to pay me a lot more than $75 (Queens, N.Y.)
CAN YOU WAIT ON LINE TO GET THE iPHONE FOR ME? "Not doing anything this Friday? Wanna make a quick $75? Wait on the line for me and/or buy the iPhone for me and you make a quick $75! There are "line-waiters" advertising on CraigsList who are charging $250, but guess what? Nobody is going to pay someone $250 for an already expensive phone! Get real folks! I'm for real, and I will pay someone (you!) $75 to wait on line for me or buy me the iPhone. I would prefer for someone to wait at the Apple Store at the Roosevelt Field Mall in Garden City. So if you live out on Long Island and have nothing to do on Friday, June 29, then why not make a quick $75? This offer is ideal for any high school student looking to make a quick easy $75. Email me back as soon as possible so that we can work out the details over the phone. Until then, take care."

There's a new Web site called Real People Real Stuff where anyone can post a classified video. As expected, there are plenty of bad-quality clips and boring infomercial-type stuff, selling real estate, cars and even Shih Tzu puppies. But there are also some hidden gems.

For instance, some guy in Alexandria, Va., wrote a song about his company's "Dog Guard" invisible pet fence. "We keep your hound aroundddd. We keep your hound aroundddd," he croons as he strums his guitar.

In another charming and informative video, a Canadian woman illustrates the "lack of integrity" of the street parking meters in Montreal. Basically, anyone can override the system by sticking as little as 5 cents (Canadian obviously) into the meter after someone has already paid for an hour, thus cheating the driver out of the full time and ensuring he or she gets a ticket. Once the minutes allowed for with the 5 cents are up an alarm goes out to the parking cops and they come and ticket the car, without knowing that the driver initially paid more, says the woman. (Listen for her to say "about" like "a-boot." Very cute.) The parking meters provide an easy and confidential way to get revenge on people, she notes.

In another video, a man says he is selling a stuffed animal--a one-eyed beaver eating wood that he calls a "family heirloom"--because his girlfriend hates it. Not nearly as freakish as the stuffed frogs playing instruments my stepdad has collected, though.

Listpic, the visual searching and browsing tool for Craigslist has been blocked from the service as of yesterday. Craigslist creator Craig Newmark posted on the Craigslist user forums to alert the community to the shutdown last night, citing bandwidth drains and Listpic's attempts to "monetize" Craigslist by piggybacking off its services and using its own advertising. Newmark claimed that so much bandwidth was being used by the third-party service that it was "making it harder for the vast bulk of people who visit our site."

Listpic provided its users with a fairly simple way to sort and browse through listings on Craiglist by displaying items as picture thumbnails as opposed to Craigslist's pages full of plain text links. The site also featured its own ads, which went against Craigslist's terms of service.

One of the most interesting tidbits that's come out of this is a vague mention of Craigslist potentially building its own visualization tool in this follow-up post by Newmark. Some of the most useful applications of Craigslist have been the ones that take the data and present it in different ways. One of the clearest examples of this are the house and apartment hunting mash-ups like MapsKreig and HousingMaps.com. Both let you browse for places to live by exploring a Google Map.

The saga continues to unfold over on this Craigslist forums thread.

[via DownloadSquad]

Facebook's new "Marketplace" classifieds feature launched quietly this weekend, giving the social networking site's members the ability to post Craigslist-like ads and make them visible to their friends and "networks" (which, if you aren't familiar with Facebook, are based around regions, high schools and colleges, and companies). I gave it a quick run-through to test it out; here's what I found.

When you click on Marketplace, which is accessible by a link in the left sidebar (along with other Facebook staples like photos, groups, and notes) you are directed to the Marketplace homepage for your primary network, with tabs where you can navigate to the corresponding pages for your other networks if you're in more than one. In the image below, you can see the CNET network is the one displayed; I also have access to listings from my former university's network and to the NYC network. The interface is more or less just like the rest of Facebook--blue and white, without much clutter.

Read on after the jump...

... Read more

Very recently, Facebook launched its new "Marketplace" classifieds ads feature, a potential rival to services like Craigslist. The service, according to a New York Times article, was supposed to go live on Friday. At least in the networks that I have access to, it wasn't actually available until Sunday night. (Facebook occasionally will roll out features to select school, workplace, or regional "networks" within the service before they become widely available. But it looks like now the Marketplace is available to everyone.)

Look for our review of Facebook Marketplace very soon.