23 May 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

EBay rebuffs calls to spin-off PayPal

23 January 2014  |  3490 views  |  0 PayPal logo

EBay chief John Donahoe has rebuffed proposals from activist investor Carl Icahn that the company should spin-off PayPal to increase shareholder value.

The news of Icahn's interest came as Paypal published a strong set of fourth quarter results. Revenue increased 19% in both the quarter and the full year, resulting in $6.6 billion in 2013. PayPal gained 5.2 million active registered accounts in the quarter and ended the year with 143 million, a 16% increase.

In reporting the results, eBay announced that companies controlled by Icahn had acquired shares and derivative securities equating to an interest of 0.82% in the company. Icahn has nominated two of his employees to sit on eBay's board and called on the firm to split with PayPal.

In a conference call to investors, Donahoe said that much of PayPal's success is down to its intimate connection with the company's e-commerce platform. He also pointed to the great opportunities opening up to the firm through growth in mobile payments both on and off eBay.

"The distraction and disynergy of separation would be happening at exactly the wrong time," he told investors. "We're in this window of opportunity of commerce."

In a posting on the PayPal blog, the company says that spinning off PayPal as a separate company from eBay is not a new idea. "In fact, eBay's management team and board routinely explore all of the company's strategic options," states the post. "And based on everything the company and board see today, we continue to believe that shareholders and customers are best served by keeping PayPal and eBay together.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EBay agrees $800m Braintree acquisition

EBay agrees $800m Braintree acquisition

26 September 2013  |  11706 views  |  1 comments | 15 tweets | 11 linkedin
PayPal shines a Beacon on  the future of hands-free payments

PayPal shines a Beacon on the future of hands-free payments

10 September 2013  |  10064 views  |  4 comments | 13 tweets | 6 linkedin
PayPal re-imagines the mobile wallet

PayPal re-imagines the mobile wallet

06 September 2013  |  13181 views  |  2 comments | 26 tweets | 16 linkedin
EBay shares slide as MasterCard threatens PayPal with new fees

EBay shares slide as MasterCard threatens PayPal with new fees

19 March 2013  |  10306 views  |  0 comments | 12 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit dh.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
European banks lobby Commission to push ahead with screen scraping banEuropean banks lobby Commission to push ah...
8678 views comments | 29 tweets | 35 linkedin
Time for data-driven banking to come of ageTime for data-driven banking to come of ag...
8593 views comments | 28 tweets | 35 linkedin
Google and PayPal partner for mobile shopping by fingerprintGoogle and PayPal partner for mobile shopp...
8344 views comments | 27 tweets | 27 linkedin
Banks must get on AI bandwagon now – new Finextra researchBanks must get on AI bandwagon now – new F...
8089 views comments | 22 tweets | 30 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
7981 views comments | 19 tweets | 23 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job