Ebay and Icahn reach a settlement

Absrtact: EBay, in Thursday, reached a settlement with activist investors, billionaire Icahn Carl Icahn, ending the four-month-long proxy scramble between the two sides. Icahn withdrew the PayPal business and nominated 2 directors, while ebay agreed to take

EBay reached a settlement with activist investor and billionaire Icahn Carl Icahn in Thursday, ending the four-month-long proxy battle between the two sides. Icahn withdrew his PayPal business and nominated 2 directors, while ebay agreed to accept Mr Icahn's offer to appoint David Dorman David Dorman as an independent director.

According to the settlement agreement between the two sides, Icahn agreed to give up the previous proposal to split the PayPal business and appoint 2 new directors. In return, ebay agreed with a proposal before Icahn to appoint Domain as an independent director. The 60-Year-old man is currently chairman of CVS CVS, the second-largest chain pharmacy operator in the United States, and previously served as chairman of At&t and Motorola. After Dorman joined the ebay board, 10 of the company's 12 directors will be independent directors. The remaining two independent directors are Pierre Omidia Pierre Omidyar, founder and chairman of ebay, and president and CEO Donahoe John Donahoe.

Icahn began fighting for ebay control in January this year and suggested that the company Peel off its payment business PayPal. Icahn believes that the benefits of ebay's stripping PayPal payment business are obvious. PayPal if you become an independent company, you will be more focused on its own development, or can be acquired by other companies. Ebay has since said it has considered the idea of stripping PayPal in depth, and believes that keeping PayPal is a better option. Icahn then called on ebay to have the payment department PayPal carry out an IPO, and sell 20% of its shares in the deal. "The fair market value of ebay and PayPal has been blinded by the ' diversification discount '," says Mr Icahn, noting that the listing of the PayPal business by IPO "will allow two companies to attract a more natural shareholder base".

Icahn said in a Thursday statement that he still believes that "in the near future" split PayPal is in the interests of shareholders, and will continue to discuss with the company in private. Icahn said that the Donahoe did not make a commitment, the two sides have agreed to discuss the strategic options on a regular basis. Icahn also posted a message on Twitter that he had signed a confidentiality agreement with ebay, he was "very satisfied" with the outcome of the negotiations, that the results for shareholders is a "double win" results.

Long-term shareholder

Donahoe in an interview in Thursday, said Icahn has seen our company's potential and opportunities, I think he will indeed become the company's long-term shareholders. Ebay's shares fell 3.2% per cent in the Nasdaq stock market in Thursday, at $54.08. Since Icahn's trading in ebay this January, the company's share price has not changed much.

Ebay is also one of the technology companies that have been under pressure from activist investors in recent years. In addition to this company, including Icahn and investment company ValueAct Holdings LP and other radical Investors, Microsoft, Apple, Juniper NX, Yahoo and other companies have launched attacks and forced some companies to increase dividends, restructuring or increase board seats.