eBay and Icahn settle proxy fight

Summary:Icahn is withdrawing both his proposal to separate the company's PayPal business and his two nominees to the company's Board of Directors.

The contentious squabble between eBay and billionaire investor Carl Icahn has finally cooled as both parties reached an agreement to end their proxy contest for the company's upcoming annual meeting of stockholders.

Icahn is withdrawing both his proposal to split the company's PayPal business and his two nominees to eBay's Board of Directors. eBay did however agree to appoint business executive and founding partner of Centerview Captial Technology David Dorman as an independent director to the board, as per Icahn's suggestion.

eBay CEO John Donahoe was expectedly pleased with the agreement, noting in a statement that the deal allows the company to shift full focus on "a goal every shareholder agrees on — growing PayPal and eBay."

He continued: 

As a result of our conversations, it became clear that Carl and I strongly agree on the potential of PayPal and our company. I respect Carl's willingness to work together to drive sustainable shareholder value today and into the future. His record shows that he has done this with many other companies in the past.

Icahn himself seemed satisfied wtih the deal:

Screen Shot 2014-04-10 at 8.49.33 AM

But the PayPal battle could be far from over, as Icahn stated that he still stands by his position that PayPal and eBay should separate:

I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future and intend to continue to press my case through confidential discussions with the company. While John has made no commitments regarding such a separation, he and I have agreed to meet regularly when he is in New York to discuss strategic alternatives. 

Related coverage:

 

Topics: E-Commerce, CXO

About

Natalie Gagliordi is a staff writer for CBS Interactive based in Louisville, Kentucky, covering business technology for ZDNet. She previously worked as the editor of Kiosk Marketplace, an online B2B trade publication that focused on interactive self-service technology, while also contributing to additional websites that covered retail tec... Full Bio

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