eBay Inc (NASDAQ:EBAY) gains more credibility of being on the verge to unlocking a great value story as Dan Loeb, founder of Third Point Management joins the ranks of the company’s significant investors. CNBC‘s Scott Wapner reported on this new development.
eBay Inc (NASDAQ:EBAY) has been the focus of news today on account of the announcement of its decision to sever PayPal from the company’s businesses. Carl Icahn who had advised eBay to spin off its subsidiary months ago has also been in the limelight. Dan Loeb’s entry into the scene, however, is a significant re-enforcement of the belief that the spin-off was a good decision on part of eBay Inc (NASDAQ:EBAY)’s management.
“[…] Third Point’s Loeb, according to my source also had conversations with eBay Inc (NASDAQ:EBAY)’s CEO, John Donahoe and that Third Point is said to be very pleased with the news that we got today about this split, PayPal and eBay . This wasn’t a position that was taken over night, I can tell you that, and I think there’s is a big belief what eBay can be, now that eBay and PayPal have split […],” said Wapner.
eBay Inc (NASDAQ:EBAY)’s stock price rose from $52.6 to $56.7 on announcement of the divestiture. As of now, the stock is trading at $57.03.
The market of digital payments is getting crowded and investors had little faith that PayPal would be able to deliver the same growth that it has in the past, if it remained a part of eBay Inc (NASDAQ:EBAY). On account of this eBay’s stock price had been experiencing a slow decline.
Just this month, Apple Inc. (NASDAQ:AAPL) announced its new payment platform Apple Pay, as the company is looking into tapping some revenues from the growing mobile payment industry. Moreover, Alibaba Group Holding Ltd (NYSE:BABA), the e-commerce giant also has its own online payment arm in the form of AliPay.
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