23 July 2017
download the report now

Icahn backs down in eBay spat over PayPal spin-off

10 April 2014  |  4111 views  |  0 PayPal logo

eBay has successfully fought off a bid by activist investor Carl Icahn to force a spin-off of the online flea market's PayPal subsidiary, with both sides calling a truce after a bitter four-month struggle.

Icahn is withdrawing both his proposal to separate the company's PayPal business and his two nominees to the company's board of directors, although he won a concession to appoint an ally in the form of David Dorman, a founding partner of Centerview Capital Technology and former chairman of Motorola, to the eBay board.

In a statement released to the SEC, Icahn says: "We are happy to have reached this détente with eBay and believe that Dave Dorman will be a great addition to the company's board of directors. As chairman of Motorola, Mr. Dorman, working in tandem with our board nominees, guided the company through the successful separation of its mobile device and home businesses, which greatly enhanced shareholder value."

As part of the deal, Icahn has agreed to sign a confidentiality agreement covering any non-public information that directors may share with him, although it does allow Icahn to discuss business progress with his nominee.

Says Icahn: "I am optimistic that this arrangement with eBay will enhance our ability to discuss large issues affecting the company with greater intelligence and will help to enhance shareholder value. 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."

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 urges shareholders to reject Icahn's PayPal spin-off plan

EBay urges shareholders to reject Icahn's PayPal spin-off plan

25 March 2014  |  3634 views  |  0 comments | 2 tweets | 7 linkedin
EBay rebuffs calls to spin-off PayPal

EBay rebuffs calls to spin-off PayPal

23 January 2014  |  3561 views  |  0 comments | 3 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsvisit www.abe-eba.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
13843 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
10079 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8996 views comments | 16 tweets | 12 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
7598 views comments | 25 tweets | 16 linkedin
PayPal strikes deals with Chase and CitiPayPal strikes deals with Chase and Citi
6802 views comments | 9 tweets | 5 linkedin