eBay Initiates a Dividend, Gives Upbeat Earnings Outlook
- CEO Wenig rebuffs demands to sell parts of the company
- Marketplace had slow holiday growth, gives lackluster outlook
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EBay Inc. Chief Executive Officer Devin Wenig reached out to activist investors by issuing the company’s first-ever dividend, but rejected for now the idea of selling tickets marketplace StubHub and other pieces of the company.
Wenig’s moves helped the online marketplace divert attention from sluggish growth during the critical holiday quarter and a disappointing revenue forecast for the current year. EBay said Tuesday that it will initiate a dividend of 14 cents a share and add $4 billion to its stock repurchase program, planning to return about $5.5 billion to shareholders this year.