Icahn Calls for eBay to Split Up Icahn Wants eBay to Spin Off Its PayPal Business Into a Separate Company
Activist investor Carl C. Icahn has called for eBay Inc. (EBAY) to spin off its PayPal business into a separate company, the online marketplace company said Wednesday in its quarterly earnings report. Mr. Icahn has indicated that he nominated two representatives to eBay's board, and that he has gained a 0.82% interest in the company, eBay said. EBay's prediction of a less-than-jolly holiday selling season also came true, as the company reported sales at the low end of its own expectations. EBay said in October that consumers seemed "tentative about spending" heading into last year's final three months, which typically makes up about 30% of the company's yearly total. EBay reported fourth-quarter earnings per share of 65 cents, on revenue of $4.53 billion. Analysts had expected per-share earnings of 80 cents on revenue of $4.55 billion, according to Thomson Reuters.