Activist investor Carl Icahn talks with Bloomberg TV’s Trish Regan about an agreement made with eBay Inc. CEO John Donahoe to end the ebay proxy battle that lasted over four months. Splitting off PayPal could have meant saving the company from further falling into the Abyss. A company that has been stifling small businesses for the last ten years by throwing good money away and hurting eBay shareholders. Icahn’s proposal will no longer be presented to shareholders at eBay’s annual meeting next month, Icahn hasn’t completely backed down on his idea of eBay selling off its payments business.
“I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future and intend to continue to press my case through confidential discussions with the company,”
eBay is really a particular company that is split into a couple of sections: Market place plus PayPal. The logic in splitting PayPal was that Marketplace has become a laggard that is weighing down PayPal’s full value. eBay’s Marketplace accounts for nearly 60% of the company’s total revenue, but grew just 12% in 2013, and many analysts believe that Marketplace’s growth could fall below the 10% mark as early as this year.
Carl Icahn claims eBay is greatly undervalued so he wants to wait, and also says that it’s not a matter of if but its a matter of time, and that it must happen at some point. eBay Proxy battle. It is in my opinion that eBay Inc paid off Carl Icahn to simply walk away and come back to fight another day. If this is true, this is a sad day for small businesses at eBay Inc. We all know that payoffs in the corporate world are quite common. Carl Icahn is truly not the gunslinger we thought he was.
eBay Proxy Battle Settled
CEO John Donahoe talks about truce with Icahn:
“something here stinks like dead fish. Did Carl Icahn get some shares out of this deal? Sounds like John Donahoe got a spanking by Carl in the private Donahoe Guest bedroom. I bet a lot of papers were signed over that weekend at John’s house. Would have loved to be a fly on the wall for that”.