Icahn Proposes PayPal Spinoff

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Jan. 22 (Bloomberg) –- Bloomberg’s Trish Regan reports on the letter Carl Icahn sent to eBay’s board telling them they need to spin off PayPal with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

A short time ago.

He called in and we chatted about ebay.

He wants to see them spin off paypal.

I have to say it's not a terribly new idea.

People have talked in the past about paypal being an opportunity for ebay as it goes forward.

This is the first time you have the likes of carl icahn sending a letter to the board saying, i think you need to do this.

The board's response has been to not spin it off.

He was also critical, or slightly critical, of management there.

He did say that the management at apple, tim cook is doing a great job.

"i don't know if the same can be said of ebay." we can share some of this now from that interview.

First of all, me asking why ebay?

Take a listen.

We have done a lot of work on ebay and we believe without question it is a no-brainer that paypal should be spun off.

He has done a lot of work on it.

I just want to say, maybe give a little background about carl icahn as the representative in this case.

Apple, dell, herbalife.

This goes all the way back to his time at twa as a corporate raider.

Yes, he has quite a history being an activist and being incredibly successful at it.

He has had the steps two.

Clorox did not work out all that well.

But he has mostly wins.

He can throw his weight around.

This is a guy, if you get that call -- that's right.

It's interesting.

The haines ceo, he said the day he got that call, he picked up the phone.

His assistant said "carl icahn is on the phone for you ergo -- on the phone for you," you thought it was a joke.

It's no joke.

It's your worst nightmare to get that call.

Because he has been active and he is very public and what he does.

He uses twitter to communicate to the various companies of which he is invested sometimes.

He is now on twitter.

That happened in the last year.

He did suite the news about apple, saying he was upping his stake.

He had what, half $1 billion added over the last week or so?

And he is pushing for $50 billion in buyback.

On bloomberg tv, he said that he likes management.

That it is the board that is the problem.

He is not fond of management over at ebay.

You spoke to him -- i think he made the case that there should be a different compensation structure for paypal versus ebay?

They are really two different businesses.

Obviously, there is the difference in shareholder values.

He thinks that it could get bonded.

I asked him where it would ago, and he wouldn't answer that question.

But let's share with you folks a little bit more from the interview with carl.

There's no reason they should be together at this point, in our opinion.

In fact, i think it would be helped by the management team that is separate and can go the wrong way.

I think the multiple would go up dramatically.

Also the health of the company would be better.

Ok, he wants a different management team at paypal.

And he thinks that is what will deliver value.

I want to bring in cory johnson.

He has been following the story.

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

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