Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

eBay Inc (EBAY)’s House Sweep Initiation By Icahn Enterprises LP (IEP)’s Carl Icahn

eBay Inc (NASDAQ:EBAY)‘s latest move to spinoff PayPal, something that Carl Icahn of Icahn Enterprises LP (NASDAQ:IEP) suggested a few months ago, is a resounding blow to eBay’s corporate governance structure. Kevin O’Leary, who is a Shark Tank investor explained on CNBC why it’s not just eBay’s CEO who needs to be punished on account of this mismanagement.

Carl Icahn as viking

O’Leary stressed on two factors that highlight eBay Inc (NASDAQ:EBAY)’s blunder to fight off the suggestion made by Icahn Enterprises LP (NASDAQ:IEP). Firstly, the significant amount of shareholder’s money that was spent, or spilled and wasted, to fend off this idea, considering that the company’s management and board of directors is supposed to  make sure that those funds are used in the best way possible. Secondly, the complete reversal of stance by eBay, not just a few years down the line, but only a few months.

According to O’Leary, this makes eBay Inc (NASDAQ:EBAY)’s board look corrupt or inefficient, or maybe both. They let the CEO of their company feed his ego or any grudge that he might have against Carl Icahn or Icahn Enterprises LP (NASDAQ:IEP), with the shareholders’ hard earned cash.

“[…] In the case of eBay Inc (NASDAQ:EBAY) board, it’s not just the CEO that should have been whacked. You could argue that the millions spent fighting Icahn, they should whack some board members too. Clean the whole house. There is nothing wrong with that outcome. And this is only months later. This is not years later, this is months later. They should be accountable for the millions of dollars they spent in print ads, fighting of Icahn’s idea, now showing the fruit of its results,” said O’Leary.

Julia Laroche of Business Insider, who was also present at the interview raised an interesting point in favor of activists like Carl Icahn or companies like Icahn Enterprises LP (NASDAQ:IEP). She said in today’s corporate environment where corporate governance still remains ac Achilles’ heel, such activists or companies could prove to be a proxy for shareholders’ will.

Video Embed Size: 530 X 298 640 X 360

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!