Tags: EBay | Icahn | Split | PayPal

EBay Spurns Icahn Proposal to Spin off PayPal Unit

Wednesday, 22 Jan 2014 05:32 PM

EBay Inc. on Wednesday said activist investor Carl Icahn made a non-binding proposal for the e-commerce company to spin off its PayPal payments business into a separate entity.

But eBay, which bought PayPal for $1.5 billion in 2002, said its board concluded that it would be better off keeping PayPal as part of the company.

Shares of eBay rose 4.3 percent to $56.75 in after-hours trading.

"Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders," eBay said in a statement.

Icahn, who earlier this month bought shares and derivatives giving him a 0.8 percent economic interest in eBay, also nominated two of his employees to the eBay board.

Revenue at eBay's PayPal division rose 19 percent during the holiday quarter, fueled by the growing use of mobile phones to shop. PayPal's total payments volume, a gauge of how much it is used to complete a transaction, rose 25 percent to $180 billion worth of transactions.

Companywide, revenue rose 13.5 percent to $4.53 billion for the quarter ended Dec. 31.

For 2014, eBay forecast revenue of between $18 billion and $18.5 billion, while analysts expected a forecast of $18.5 billion, according to Thomson Reuters I/B/E/S.

Net income for the fourth quarter was $850 million, or 65 cents a share, up from $751 million, or 57 cents a share, a year earlier. Excluding some items, eBay earned 81 cents per share, a penny better than expected.

© 2017 Thomson/Reuters. All rights reserved.

   
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EBay Inc. said activist investor Carl Icahn made a non-binding proposal for the e-commerce company to spin off its PayPal payments business into a separate entity.
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2014-32-22
Wednesday, 22 Jan 2014 05:32 PM
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