EBay disagrees with Icahn, says better off keeping PayPal
(REUTERS) - EBay Inc on Wednesday said activist investor Carl Icahn made a non-binding proposal for the e-commerce company to spin off its PayPal payments business into a separate entity.
Shares of eBay rose 7.8 per cent to US$58.68 in after hours trading.
But eBay, which bought PayPal for US$1.5 billion (S$1.9 billion) in 2002, said its board concluded that it would be better off keeping PayPal as part of the company.
"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 said in a statement.