Anorak

Anorak | EBay To Sell Off PayPal: No, Not Doing It Because Of Icahn, No Siree!

EBay To Sell Off PayPal: No, Not Doing It Because Of Icahn, No Siree!

by | 30th, September 2014

EBay has just announced that it’s to sell off PayPal. All of which comes as something of an amusement as the company has been screaming loudly for ages now that of course it is not going to do any such thing. The reason being that a hedge fund investor (he prefers to call himself an “active” investor) has been pushing the company to do this. So, of course, management has been shouting “No!” for no one wants to be told what to do by outsiders. Especially when it turns out he’s right and you change your mind :

EBay said on Tuesday that it would spin off its PayPal payments unit into a separate publicly traded company, taking a step the activist hedge fund magnate Carl C. Icahn first demanded nine months ago.

The move will cleave eBay almost in half, separating it from the payments processor it acquired 12 years ago and built into a giant that generates almost half of the company’s revenue.

For nine months that management has been saying that Icahn is crazy to be demanding such a thing. And now they’re saying he’s been right all along.

As to why the plan might make sense: it’s hugely expensive to set up an electronic payments

You have already read 1 premium article for free today
Access immediately the premium content with Multipass

Or come back tomorrow



Posted: 30th, September 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink