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EBay founder defends plan to retain PayPal

Published February 27, 2014 8:17 am

This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

New York • EBay's founder Pierre Omidyar is weighing in on billionaire investor Carl Icahn's claims that the company is not operating in the best manner for shareholder value.

Icahn is urging the company to split off its PayPal unit, which is the fastest growing unit of the e-commerce company. In three letters to shareholders over three days, Icahn has also leveled attacks at two directors and company CEO John Donahoe.

On Thursday, founder and chairman Omidyar said Icahn is making unsubstantiated claims about the company. He says the idea of splitting off PayPal is not a new one and that eBay has considered it and decided against it in the past.

Ebay bought PayPal for $1.3 billion in late 2002. Icahn disclosed a less than 1 percent stake in eBay in January.