Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy

Icahn wants eBay to set PayPal free

Mark Garrison Jan 23, 2014
Share Now on:
HTML EMBED:
COPY

A high-profile activist investor’s latest use of the megaphone is to call for an iconic tech firm to split up. Carl Icahn wants eBay to spin off PayPal, separating the online auction site from the digital payment service. eBay’s CEO wants to hang onto PayPal. He says keeping it provides that enduring corporate buzzword: synergy.

“It’s a seamless integration for the users of eBay,” says University of North Carolina business strategy professor Arvind Malhotra. “That’s always been a big advantage, to have such a dominant payment system be part of your company.”

Malhotra can also lay out the opposite argument about PayPal. Separating it from eBay would potentially make it a more attractive option for eBay’s competitors. That might enable a fast-growing service to grow even faster.

Carl Icahn believes setting PayPal free will boost the stock, pointing out that eBay has higher growth rates than other eBay lines of business.

He’s also calling for change at Apple. And many other tech firms have found themselves in the crosshairs of activists. Market watchers expect continued interest from activists in technology companies.

“They’re not young anymore,” says Northeastern University finance professor Don Margotta. “Now people are looking at them no longer as constant growth engines, but as maturing companies.”

Even an aging company can still make enough money to be fresh meat for activist investors.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.