Activist investor Carl Icahn is backing off of demands that eBay spinoff its Paypal online payment business and he's dropping his nomination of two hand picked members to eBay's board.
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In return, eBay will appoint David Dorman -- a former AT&T (T) executive -- as an independent director at Icahn's behest.
"I am optimistic that this arrangement with eBay will enhance our ability to discuss large issues affecting the company with greater intelligence and will help to enhance shareholder value," Icahn said today.
The compromise comes ahead of eBay's annual shareholders meeting next month.
TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."