Dallas, Texas 04/11/2014 (FINANCIALSTRENDS) – eBay Inc (NASDAQ:EBAY) may be the most successful auction portal in the world, but on the home front it has been fighting internal battles with activist investors like Icahn proxy war.
eBay Inc (NASDAQ:EBAY) known for the way it changed the paradigm of online sales with its unique e-auction website, is indeed a fighting off the likes of investors who are baying for the company to shed additional baggage, in the form of non performing business segments.
Demands: Spin-off PayPal
Heading this hit-list which they want eBay Inc (NASDAQ:EBAY) to spin-off is the payment gateway website – PayPal, which eBay picked just a few years ago.
eBay Inc (NASDAQ:EBAY) undoubtedly has a strong presence its lines of business – from GSI, Payments to Marketplaces.
Typically it has remained ahead of the evolving ecommerce platform by constantly finding the directions of change- it acquired in 2013, Braintree, even as it bought-up PhiSixInc in Feb of this year.
Carl Icahn has been insisting that PayPal Inc, which has been growing at a quick pace, on its own steam, to be spun-off.
Change of Heart
However, in a sudden turn of events, he has now opted not to push for such changes as this billionaire investor did not find the required number of shareholder support to move things again!
In fact Icahn has now called back the two nominees he had made to eBay’s board, even as the next annual meeting for eBay Inc (NASDAQ:EBAY) will meet in May.
Compensatory move by eBay
However, eBay hoped to make peace by appointing one of the lead members, in fact the founding partner of Centerview Capital Technology as the 10th director.
Prior to this quiet settlement the battle between the investor and the CEO of eBay Inc was acerbic, if not contentious to say the least!