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EBay founder rejects Icahn’s call for PayPal spinoff

(Reuters) – EBay Inc founder and Chairman Pierre Omidyar rejected investor Carl Icahn’s call to separate the company’s fast-growing PayPal payments unit, saying the businesses were better off together.

Photo illustration of an Ebay logo in Encinitas, California
An Ebay logo is displayed on a monitor in this photo illustration in Encinitas, California, April 16, 2013. Ebay will report their earnings on Wednesday. REUTERS/Mike Blake

Omidyar, who is the largest shareholder in eBay with a stake of 8.37 percent, said separating PayPal from eBay was not a new idea and the board had evaluated the option but decided to keep the businesses together.

Icahn, who disclosed a 2.15 percent stake in the e-commerce company last week, had also accused two long-time eBay board members, Marc Andreessen and Scott Cook, of having business interests that directly competed with eBay.

Instead of having an honest discussion about a reasonable question, Mr. Icahn has chosen to attack the integrity of two highly respected and qualified board members, Scott Cook and Marc Andreessen, Omidyar said in a statement.

Venture capitalist Marc Andreessen defended the corporate-governance practices of the technology industry in an interview with the Wall Street Journal saying, If I’m on a public board and that public company is looking at buying a company in a certain space and one of my startups is in that space, I will not be part of that conversation.

This has been established over decades of corporate governance and there’s nothing unique to tech about it, Andreessen told the Journal. (link.reuters.com/ved37v)

(Reporting by Supantha Mukherjee and Varun Aggarwal in Bangalore; Editing by Kirti Pandey and Supriya Kurane)

Article from: reuters.com

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EBay founder rejects Icahn’s call for PayPal spinoff

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