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Carl Icahn
EBay will spin off PayPal, giving in to Carl Icahn
EBay will spin off PayPal, giving in to Carl Icahn

Online marketplace EBay Inc. is bowing to investor pressure by spinning off its payment business PayPal into a separate publicly-traded company by 2015. Wall Street cheered the news Tuesday and pushed up shares of EBay by 6.8% to $56.24 in morning trading. The move is a sharp reversal for the San Jose company, which had spent months fighting activist shareholder Carl Icahn, who had argued both businesses would benefit from a split. John Donahoe, chief executive of EBay, said a strategic review concluded that keeping EBay and PayPal together was becoming "less advantageous." "The industry landscape is changing, and each business faces different competitive opportunities...

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