Menu
Investor Icahn blasts eBay board, calls for company to spin off PayPal

Investor Icahn blasts eBay board, calls for company to spin off PayPal

Investor Carl Icahn has ripped into the eBay board of directors and called for the company to spin off its PayPal unit in a colorful letter to eBay stockholders released Monday.

Icahn, a long-time activist investor in tech companies. accused two eBay board members, Marc Andreessen and Scott Cook, of directly competing with the company, and said that CEO John Donahoe was "completely asleep or, even worse, either naive or willfully blind to these grave lapses of accountability and stockholder value destruction." Icahn called on eBay's board members to resign.

EBay should spin off PayPal because the online payments provider is "shrouded by a conglomerate discount the market has afforded eBay," according to his letter. A separate PayPal would allow the two "independent management teams to most effectively build two very different business platforms, make economic decisions independent of each other and, most importantly, foster innovation," he wrote.

The online payments industry is evolving quickly, and PayPal is at a critical point where it could be left behind, Icahn added. Icahn has nominated two allies for slots on eBay's board.

Icahn, who reportedly owns about 2 percent of eBay's stock, questioned Andreessen's commitment to eBay, saying the entrepreneur purchased "large stakes" in two former eBay subsidiaries, Skype and Kynetic. Andreessen has also advised several competitors to PayPal, Icahn wrote.

Cook is founder, former CEO and a current board member of Intuit, which has a Go-Payment service that is a "direct competitor" of PayPal, Icahn added. "How can the board have a conversation about the strategy or performance of PayPal when a representative of a direct competitor who has so much at stake is in the room?" Icahn wrote.

EBay responded by saying Icahn has "cherry-picked old news clips and anecdotes out of context to attack the integrity of two of the most respected, accomplished and value-driven technology leaders in Silicon Valley."

The company is "fully transparent" about its board members' other affiliations, the company said in its statement. The company called Andreessen and Cook valuable assets to the company's board.

EBay's board sees significant advantages in keeping PayPal and eBay together, the statement added. "The board regularly assesses all strategic options for the company; should circumstances change the board is entirely capable of evaluating alternatives for optimizing shareholder value," the statement said.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesMarc AndreessenebaypaypalScott CookJohn Donahoebusiness managementinternetrestructuringMergers and acquisitionsCarl Icahn

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments