This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Carl Icahn Likes Elon Musk

NEW YORK (TheStreet) -- In the battle of what to do with eBay's (EBAY - Get Report) PayPal, Carl Icahn is listening to Elon Musk.

Musk, the electric car entrepreneur who has been seen as something of a legend among Silicon Valley, started PayPal along with the well-traveled venture capitalist Peter Thiel, argues that PayPal is best utilized outside of eBay's umbrella, a change Icahn is pushing. Musk, of course, is CEO and co-founder of Tesla Motors (TSLA) as well as SpaceX.

In an interview on CNBC, Icahn offered his thoughts on the proposed split between PayPal and eBay as well as negative comments about eBay's board of directors. Icahn said he's not alone in charging that PayPal should operate as a separate company from eBay -- Musk does as well.

Icahn referred to Musk as "extremely good," alluding to his past achievements with Tesla, PayPal and SpaceX.

Musk is quoted in a Forbes article earlier this year saying, "It doesn't make sense that a global payment system is a subsidiary of an auction website. It's as if Target owned Visa or something."

These are our capital markets in 2014. No longer goes the days of a company listening to just a corporate raider or activist investor. Instead, the activist investor is now taking advice from Silicon Valley.

The fight of splitting PayPal away from eBay continues to go on, as eBay has continued to reject Icahn's suggestions, and recently rejected his nominees for eBay's board of directors.

Shares of eBay were falling in Monday trading, dropping 0.8% to $58.62.

--Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EBAY $57.13 -0.95%
YHOO $44.13 -0.69%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs