Feeds

PayPal mudslingfest TELEVISED: Icahn and Donahoe go on telly

Investor: eBay has 'worst governance ever'. CEO: It's just Carl's usual 'antics'

Build a business case: developing custom apps

The fight between activist investor Carl Icahn and eBay over the fate of PayPal has hit the media, after Icahn claimed that he'd "never seen worse corporate governance" at another firm.

Speaking to CNBC television, Icahn criticised the firm's governance policy and also said that eBay chief exec John Donahoe shouldn't have control over PayPal. The investor wants eBay to spin off the payments business, which is a big earner for the online marketplace.

Icahn has already written to investors citing a laundry list of faults with the way eBay is run and its board of directors.

He alleged that the board, particularly Marc Andreessen and Scott Cook, had conflicts of interest when it came to PayPal. On CNBC, he said that he "might blame Donahoe more than Andreessen" for letting the sale of Skype happen. The investor criticised the sale of Skype to Andreessen's investor group, saying that it was an "indisputable fact" that the subsequent sale of the VoIP firm to Microsoft a year and a half later made the group $4bn richer.

In the same letter, he said that he'd invited eBay onto CNBC to debate the future of the payments firm, but Donahoe went to Fox Business Network and Reuters to respond instead.

"We know this is sort of the antics that Carl uses and that's fine, he does what he does," the eBay chief told Fox. "Our focus is doing what we want and what shareholders, the other large shareholders, want us to do, which is stay focused on innovating and executing in the market."

Donahoe also told Reuters that he'd spoken with as many as 16 of the 20 most active shareholders in eBay and most of them supported his position of wanting to hang onto PayPal.

"The majority of them understand that they're stronger together," he said.

The top 20 shareholders, headed by founder Pierre Omidyar with an 8.4 per cent stake, hold a combined 42 per cent of eBay shares. Icahn owns just over two per cent of the firm. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.