Boston, MA 04/14/2014 (wallstreetpr) – eBay Inc (NASDAQ:EBAY) has had it rough for quite a few months now over the tuff with Carl Icahn, a billionaire who owns more than 2% of eBay. But now it seems that the snow has finally faded a bit, if not completely lifted. Plus how could a split up between two companies prove beneficial for both if together they’ve grown faster than they did when apart. So it’s all good for eBay for the time being.
Lets call it a truce
Icahn and eBay had been fighting over the eBay-PayPal split off for months now. Icahn wanted eBay to split off from PayPal, but he failed in his endeavors to do so. Icahn could not find support from the majority shareholders of eBay. The majority shareholders are still backing up the Chief Executive Officer of eBay, John Donahoe.
This truce between Icahn and eBay, in fact, was a result of all these ongoing negotiations between Donahoe and Icahn. The CEO finally seems to have convinced the billionaire to believe in his potential. Though, we hear that there has been a lot of history about Icahn alleging Donahoe to be incompetent to handle eBay’s affairs.
Icahn now has made a statement that he still supports the fact that eBay Inc (NASDAQ:EBAY) and PayPal should spilt up, but seems to have settled with the fact that the time is not right for that to happen yet. Although, he did express his expectations for the spilt up to happen in the near future.
Icahn believes that eBay Inc (NASDAQ:EBAY) and PayPal would function a lot better as two standalone entities than they do together. And hence, he issued an open letter towards the shareholders of the company. eBay obviously was against this idea and expressed that Icahn was wrong for jumping into such conclusions. The shareholders seemed to buy eBay Inc (NASDAQ:EBAY)’s arguments about why the two companies should stay together. Well, good news for eBay but not so much for Icahn.
