Where Will Ebay Go Next?
T = Trends for a Stock’s Movement
Ebay provides online platforms, tools, and services to help individuals and merchants with online and mobile commerce in the U.S. and around the world. Its marketplaces segment operates e-commerce platform eBay.com and vertical shopping sites. The company operates through three segments: Marketplaces, Payments, and GSI. Ultimately, through its tools and platforms, eBay assists individuals and merchants around the globe engage in online and mobile commerce.
Activist investor Carl Icahn is at it again. This time the 77-year-old mogul is pushing eBay to spin off PayPal into its own company. Icahn, who owns nearly 2 percent of eBay, is fighting to gain two seats on the company’s board to get his way. ”I think PayPal might be acquired and that would make it even better for shareholders,” Icahn told the Wall Street Journal. “And it’s a shame to have it held back by eBay and that I think is what’s happening.”
PayPal is a core part of eBay’s current business strategy and brings in nearly $7 billion in annual revenue. Although eBay has sold off successful business ventures in the past (Skype was sold to Silver Lake in 2009) they are strongly opposed to Icahn’s urgings. ”We believe that our collection of assets drive more growth and more success together, than apart,” said eBay CEO John Donahoe. EBay founder Pierre Omidyar and Marc Andreessen also took to Twitter to say they thought eBay and PayPal were best kept together.