Cooperman and Icahn Agree that eBay Should Spinoff PayPal

March 11, 2014 James Heinsman In the News

In a rare moment of agreement, Leon Cooperman, CEO of Omega Advisors hedge fund; and iconic investor Carl Icahn, agreed that the best thing for eBay to do at the moment would be to spin off its PayPal online payment business.

“I give Carl a lot of credit for taking the time and showing the energy, and in this case, we happen to agree with him,” Cooperman, an eBay shareholder to the tune of about 2 percent of shares, said. “I think they should spin out a portion of PayPal.”

Icahn, who also happens to own about 2 percent of eBay, has been sending a strong message to the on-line bidding company for the past few weeks that the time has come to unleash PayPal. Icahn has more than once said that eBay behaves in a less than perfect manner when it comes to corporate governance.

In a different interview Icahn said that John Donahoue, CEO of eBay, has achieved “mediocre” results for the company, especially compared to Amazon, Visa and Matercard.

Carl Icahn, eBay, John Donahoe, Leon Cooperman, Omega Advisors,

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