Icahn says PayPal spin-off is almost a 'no brainer'

Activist investor says PayPal needs to acquire competitors or be acquired

PayPal Here with chip-and-PIN reader

PayPal Here with chip-and-PIN reader

Activist investor and hedge-fund manager Carl Icahn says eBay's decision to spin off PayPal into a separate company is "almost a no brainer."

Icahn, who is a major shareholder in eBay, first suggested the move several months ago but eBay's board resisted the idea at the time, saying the two companies were better off together.

That changed with Tuesday's announcement that the eBay board has approved a plan to spin-off the eBay and PayPal businesses into independent publicly traded companies sometime in 2015.

"We are happy that eBay's board and management have acted responsibly concerning the separation," Icahn said in a statement, "perhaps a little later than they should have, but earlier than we expected."

The decision comes as interest in online and electronic payments builds ahead of the release of Apple Pay, a contactless payment system expected to be launched by Apple in October.

Apple Pay is based on the same NFC technology used by PayPal and Google in their own smartphone payment apps -- systems that have so far failed to find widespread adoption among consumers.

Icahn said he believes the spin-off of PayPal is a step towards needed consolidation in the payments industry.

"It also continues to be my belief that the payments industry, of which PayPal is an important part, must be consolidated -- either through acquisitions made by PayPal or a merger between PayPal and another strong player in the industry," he wrote.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsinternetbusiness issuese-commerceebayInternet-based applications and services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?