Icahn: Conflicts of Interest Put eBay in Peril

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Feb. 24 (Bloomberg) –- Bloomberg’s Trish Regan reports on activist investor Carl Icahn criticizing eBay’s board of directors for not agreeing to his proposed spinoff of PayPal from eBay. She speaks to Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

Letter comes out and criticizes the board for its conflict of interest.

He singled out to members -- mark andreessen and scott cook of into it, saying both of these guys have inherent conflicts of interest will stop just act up and give people the lay of the land.

Carl icahn has a big investment.

Over a billion dollars.

He would like to see paypal be spun off from the company.

He sees it as very much a separate business growing well on its own and would be better off it -- better off if it could focus.

And make more money because a spinoff would create more value.

But theoretically.

There is an annual meeting coming up and ahead of that meeting, he is getting out in front of the story.

It's not necessarily new.

People have talked about this for some time now because 41% of ebay's overall revenue comes specifically from paypal.

So much coming from paypal which is a different business, it could probably stand on its own.

Now coral is involved and part of that is getting the board of directors to be ok with that.

Right now they are not.

The ceo of ebay told me just last week that they have looked at this and are not planning to do it.

They think ebay and paypal are better off together.

Let's listen to him on this conflict of interest he sees.

I have been through a lot of these in the last 3040 years and i have said in the letter that i have never seen one as latent as this.

We have seen a lot of them, but it's -- if it weren't sad, it would be funny.

He says he has seen a lot but hasn't seen any quite as bad as this.

Take a listen to what he had to say regarding the company saying there isn't a conflict of interest regarding scott cook.

He has a billion dollars and founded into it.

It's overlapping.

We just bought braintree and we are trying to get into the processing business.

Who does he think he's fooling when they write these letters.

It's just a little overlap?

Bowl [bleep] he is worked up about it and will be campaigning trying to make some change.

He was successful at dell.

He squeezed a little more money out of michael dell.

He got a decent amount of buyback activity out of apple and is pushing to see paypal be spun off.

An interesting record.

You have herbal life, you have to add that to his record.

Maybe ebay is the next one.

But we shall see.

Ice lunch between you and world.

Much appreciated.

Carl icahn is just one story

This text has been automatically generated. It may not be 100% accurate.

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