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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Icahn Settles With EBay Board

Stocks in this article: EBAY T CVS MSI

NEW YORK (The Deal) -- Carl Icahn on Thursday backed away from his proxy battle with eBay (EBAY), dropping his proposal that the company split off its PayPal unit and withdrawing two nominees from the company's board.

The two sides in a statement said that eBay has agreed to Icahn's suggestion to appoint one-time AT&T  (T) CEO David Dorman to its board. Dorman, a founding partner of Centerview Capital Technology and chairman of CVS Caremark Corp  (CVS), worked with Icahn as lead independent director at Motorola Solutions (MSI).

EBay CEO John Donahoe, a target of stinging criticisms from Icahn in recent months, in a statement said, "we are very pleased to have reached this agreement" and return focus to running the company.

"As a result of our conversations, it became clear that Carl and I strongly agree on the potential of PayPal and our company," Donahoe said. "I respect Carl's willingness to work together to drive sustainable shareholder value today and into the future. His record shows that he has done this with many other companies in the past."

Icahn, owner of about 2% of the company's shares, in January called for eBay to split off PayPal, and in a series of letters accused eBay directors Marc L. Andreessen and Scott Cook of conflicts. The activist said that corporate governance at eBay was among the worst he had seen and that Donahoe was not up to the task of being CEO of the company.

EBay and its directors responded by pointing out examples of potential Icahn conflicts, and arguing that eBay is better served by keeping PayPal in-house.

Icahn seemingly has had a difficult time gaining traction with shareholders, in March calling on eBay to sell 20% of PayPal to the public instead of doing a full spinoff.

The activist, who as part of the deal announced Thursday signed a confidentiality agreement covering any nonpublic information eBay officials share with him, said he has been engaged in conversations with Donahoe in recent weeks and plans to continue talks about eBay's future.

"We both strongly believe in the great potential of eBay and PayPal, and I have found a number of his ideas to be extremely compelling," Icahn said. "However, I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future and intend to continue to press my case through confidential discussions with the company."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs