Wednesday, January 22, 2014
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eBay reported its Q4 2013 earnings and the stock went up 9% immediately in after-hours trading.
The company is proposing a $5 billion stock buyback, and has received
a proposal from activist billionaire investor Carl Icahn to split off
PayPal into a separate unit. Icahn also wants two of his people added to
the board of directors.
eBay says it has previously considered and rejected this idea, and that Icahn has a 0.82% stake in the company.
Here are the results:
- Revenues: $4.5 billion, up 13%.
- Marketplaces revenue: $2.3 billion.
- EPS: 81 cents - a beat.
- Net income: $850 million.
Here is what the company says about the Icahn proposal:
Proposal from Carl Icahn
— The company also announced today that it has received a notice from
Carl Icahn indicating that he has nominated two of his employees to its
Board of Directors and submitted a non-binding proposal for a spinoff of
its PayPal business into a separate company. The notice stated that
companies controlled by Mr. Icahn had, earlier this month, acquired
shares and derivative securities that give him an economic interest of
approximately 0.82% in the company.
eBay welcomes the opportunity to listen to the perspective of all of its shareholders, including Mr. Icahn. His Board nominations will be passed on to the Board's Corporate Governance and Nominating Committee, which will consider them in the ordinary course of business. We would note that eBay has a world-class board of directors with directors who have significant experience in technology and financial services.
Regarding Mr. Icahn's separation proposal, eBay's Board of Directors routinely assesses the company's strategic direction and has explored in depth a spinoff or separation of PayPal. eBay's Board of Directors has concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best way to maximize shareholder value. As part of eBay Inc., PayPal is able to leverage the company's technology capabilities, commerce platforms and relationships with retailers, brands and large merchants worldwide. Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders.
eBay Inc.'s Board of Directors and management remain focused on delivering sustainable results and driving long-term value for all shareholders.
The company will provide additional perspective during and after its quarterly earnings call scheduled for Wednesday Jan. 22nd at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time.
eBay welcomes the opportunity to listen to the perspective of all of its shareholders, including Mr. Icahn. His Board nominations will be passed on to the Board's Corporate Governance and Nominating Committee, which will consider them in the ordinary course of business. We would note that eBay has a world-class board of directors with directors who have significant experience in technology and financial services.
Regarding Mr. Icahn's separation proposal, eBay's Board of Directors routinely assesses the company's strategic direction and has explored in depth a spinoff or separation of PayPal. eBay's Board of Directors has concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best way to maximize shareholder value. As part of eBay Inc., PayPal is able to leverage the company's technology capabilities, commerce platforms and relationships with retailers, brands and large merchants worldwide. Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders.
eBay Inc.'s Board of Directors and management remain focused on delivering sustainable results and driving long-term value for all shareholders.
The company will provide additional perspective during and after its quarterly earnings call scheduled for Wednesday Jan. 22nd at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time.
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