eBay Inc (EBAY) Firing 2,400 Employees Because Of Carl Icahn?

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In an article on Fool, it was reported that eBay Inc (NASDAQ:EBAY) is under heavy pressure from activist investor Carl Icahn, who is pushing the company to make massive changes in its board, market strategy and spin-offs. The source said that major difference of opinion between eBay Inc (NASDAQ:EBAY) and Icahn is regarding the fate of PayPal. Icahn is arguing that eBay Inc (NASDAQ:EBAY) must sell PayPal to some technology giant whereas eBay is in for a complete spin off.

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Icahn is not controlling eBay Inc (NASDAQ:EBAY) from air. He has a solid 3.5% stake in eBay. Icahn was not given any ear in the company a few years ago, when he owned around 0.5% shares. But now. He has a strong control over the company.

The control of Carl Icahn was expanding with such a pace that eBay Inc (NASDAQ:EBAY) had to sign a deal with him, which has now put a hold on him acquiring anymore eBay stake. He was given an option to appoint someone on his behalf on the board of eBay Inc (NASDAQ:EBAY) or PayPal. The source said that Icahn chose Jonathan Christodoro, who is from Icahn’s investment group.

The source said that eBay Inc (NASDAQ:EBAY) is going to cut many jobs very soon and some analysts say that this also is coming from the demand book of Icahn. But so far, there is no strong evidence of this. eBay Inc (NASDAQ:EBAY)’s board has a strong influence of Carl Icahn. Year 2015 will bring some massive changes for eBay Inc (NASDAQ:EBAY) as the competition in the e-commerce and tech market heats up.

Carl Icahn’s Icahn Capital Lp is the largest institutional investor in eBay Inc (NASDAQ:EBAY) with over 30.80 million shares in the company by June 30.

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