NEW YORK (TheStreet) - Carl Icahn has reached a settlement with eBay (EBAY) that ends a scorched-earth campaign run by the billionaire activist to have the e-commerce giant split its PayPal division and elect two of his board nominees. Instead, eBay and Icahn reached a settlement that will add David Dorman, a long-time director of Motorola Solutions (MSI), as an independent director to eBay's board.
While Icahn will end a campaign to have the company split PayPal and remove some board members, the settlement opens up a dialogue between both parties Icahn believes may eventually lead to a PayPal spin-off. He called Thursday's settlement a "detente."
Icahn and eBay CEO John Donahoe will meet regularly to discuss the company's strategy. Meanwhile, Icahn will now have eyes and ears in eBay's boardroom through independent director, David Dorman, whom he's worked closely with in the past. Icahn also is now free to speak directly with eBay's top brass.
The settlement comes after a week of meetings between Icahn and eBay that appear to have ended with some common ground over the company's vision, and a slight change to status quo.
Should eBay execute on an ambitious strategy in 2014, Icahn's increasing voice within the company could lead to greater change in the future, or eBay may convince its most vocal of the benefits of the company's current structure and management.
David Dorman and Icahn's Motorola Breakup
Icahn suggested Dorman as an independent director to eBay's board. Dorman, 60, is a founding partner of Centerview Capital Technology and has a long experience on corporate boards. Currently, Dorman is chairman of CVS Caremark's (CVS) board of directors. He also was a board member of Motorola from 2006 to 2012, and became an independent director of Motorola Solutions when the business was spun off as a result of an activist campaign run by Icahn.