Hot Stock Minute

Sponsored by
Hot Stock Minute

Icahn's "retreat" on eBay and PayPal

Hot Stock Minute

Activist investor Carl Icahn softened his demands for eBay (EBAY) to spin off its PayPal unit. For months, Icahn has waged a very public and contentious battle with eBay, calling on the company to completely spin off PayPal. eBay has consistently maintained that PayPal and eBay are better off staying together. Yesterday, Icahn changed his tune and called on eBay to sell only 20% of PayPal in an IPO rather than spin off the whole unit.

In the associated video, Yahoo Finance Editor-in-Chief Aaron Task spoke with Lauren Lyster about Icahn's change of heart. Task calls this a retreat for Icahn. “I don’t think there’s any other way to spin it,” he said. “It is definitely a bit of a tactical retreat for him.”

In recent months, Icahn has issued a series of scathing open letters critical of eBay's Chief Executive John Donahoe and the company's board. Icahn also has questioned the company's corporate governance.

While the latest move from Icahn may be a retreat, Task says that Icahn is out to make money at the end of the day. Agitating the board of eBay and other companies like Apple has driven up their share price. “He doesn’t care how he gets there,” Task said. “If the share price goes higher, he’s going to be happy.”

Rates

View Comments (2)

Recommended for You

  • Russia ordered to pay $50 billion over Yukos

    LONDON (AP) — An international court on Monday ordered Russia to pay over $50 billion in compensation to the former majority shareholder of now-defunct oil producer Yukos over the expropriation of the company more than 10 years ago.

    Associated Press
  • Ford raises F-150 prices, dealers begin ordering 2015 models

    U.S. and Canadian dealers on Monday began ordering 2015 Ford Motor Co F-150 pickup trucks, which are lighter than earlier models, priced higher and include additional standard features, the company said. The launch of the new trucks with aluminum bodies is key for Ford as the F-150 pickups have…

    Reuters
  • Obama could curb corporate 'inversions' on his own: ex-U.S. official

    By Kevin Drawbaugh WASHINGTON (Reuters) - President Barack Obama could act without congressional approval to limit a key incentive for U.S. corporations to move their tax domiciles abroad in so-called "inversion" deals, a former senior U.S. Treasury Department official said on Monday. By invoking a…

    Reuters
  • Stock trader who called three crashes sees 20% collapse

    Stock trader Mark Cook, winner of the 1992 U.S. Investing Championship, sees a bear market coming within 12 months, writes Michael Sincere.

    MarketWatch
  • 'Lucy' tops 'Hercules' with $44M at box office

    LOS ANGELES (AP) — Luc Besson's "Lucy" proved mind can overpower muscle, topping a remake of "Hercules" by director Brett Ratner at the box office on the weekend.

    Associated Press
  • Boeing CEO sorry for 'cowering' workers remark

    SEATTLE (AP) — Boeing Co. CEO Jim McNerney apologized Friday for saying the aerospace giant's employees were "cowering" during his tenure, a comment one union official called "a new low" in the company's relationship with workers.

    Associated Press
  • Scandal-hit China food firm withdrawing all products, U.S. parent says

    The parent company of a scandal-hit Chinese food supplier said it is withdrawing all products made by the subsidiary. Shanghai Husi Food Co Ltd, owned by Illinois-based OSI Group LLC, is at the center of a major food safety scandal, which has spread from China to Hong Kong and Japan, over…

    Reuters
  • 6 steps to a bulletproof retirement portfolio

    Now, as the economy hums along and the market rises, is a good time to bulletproof your portfolio against the volatility that can strike at any time.

    CNBC
  • Play

    Mon., July 28: Family Dollar Among Stocks to Watch

    Family Dollar, AcelRx Pharmaceuticals and Tyson Foods are among stocks to watch today. MarketWatch's Victor Reklaitis joins Simon Constable on the News Hub with the details. Photo: Family Dollar

    WSJ Live
  • Trendy Chipotle burritos show how pricing power belongs to the hip

    Corporate America can learn a lot from a chicken burrito. As many companies struggle to boost prices without alienating consumers, they may want to study Mexican-food chain Chipotle, which has managed to do both. Companies including Chipotle Mexican Grill Inc , Apple Inc and PepsiCo have shown…

    Reuters
  • Play

    Can Chinese Pork Producer Crack Second IPO?

    For the world’s biggest pork producer, China’s WH, a second try at an IPO looks set to succeed. WSJ’s Ramy Inocencio talks with Hong Kong bureau chief Ken Brown on why WH’s first IPO failed and why U.S. pork prices are cheaper than China’s.

    WSJ Live
  • Cable on Ohio amusement park ride snaps, hurting 2

    SANDUSKY, Ohio (AP) — An Ohio amusement park ride that swings riders as high as 125 feet has been closed indefinitely after a cable snapped, injuring two visitors.

    Associated Press
  • 6 Money Lessons You Should Have Learned Before College

    In a matter of weeks, the class of 2018 will be...

    Business Insider
  • 5 Huge Biotech Catalysts Right Around the Corner for Top Stocks

    A brand new research report from RBC highlights more than 50 biotech event catalysts that are on the horizon. These are trial data, FDA decisions and company presentations coming soon. The analysts screened ...

    24/7 Wall St.
  • What impact would an Argentine default have?

    Under a US court order, Argentina has until Wednesday to either pay hedge funds demanding full payment on of its bad debts -- or face a default that could have serious economic consequences. It has persuaded 92 percent of its creditors to accept writeoffs of up to 70 percent, but is now facing a…

    AFP
  • JD.com to sell Microsoft's Xbox One games console in China

    JD.com Inc, China's second-biggest e-commerce company by market share, will accept pre-orders for Microsoft Corp's Xbox One games console in China from July 28 to July 30, the firm said on Monday. The pre-orders will be taken via Tencent Holdings' mobile social networks Mobile QQ and WeChat, known…

    Reuters
  • AP PHOTOS: Coal-exporting town fights rising seas

    NORFOLK, Va. (AP) — Norfolk is trapped between the causes and consequences of global warming.

    Associated Press
  • Fast food workers vow civil disobedience

    VILLA PARK, Ill. (AP) — Comparing their campaign to the civil rights movement, fast food workers from across the country voted Saturday to escalate their efforts for $15-an-hour pay and union membership by using nonviolent civil disobedience.

    Associated Press
  • Blackstone Buys $543 Million London Office Tower From Brookfield

    Blackstone Group LP (BX) agreed to purchase an office tower near the Bank of England in the City of London financial district from Brookfield Property Partners LP (BPY-U) for 320 million pounds ($543 million). Blackstone will acquire the 330,000 square-foot (30,657 square-meter) building at 125 Old…

    Bloomberg