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Tuesday, September 30, 2014

EBay follows Icahn's advice, plans PayPal spinoff in 2015, (NASDAQ: EBAY)

EBay Inc said it would spin off PayPal, its fast-growing payments business, into a publicly traded company in the second half of 2015, marking an about-face for the company.The news of the tax-free spinoff to shareholders sent eBay's shares up 10 percent to $58.15 in premarket trading.EBay Chief Executive John Donahoe had previously resisted demands by activist investor Carl Icahn to hive off the service, saying PayPal was integral to eBay's business, and vice versa.Icahn, eBay's sixth-largest shareholder with a 2.48 percent stake as of June 30, backed off from his demand in April. He also withdrew his two nominees to eBay's board, but in a concession, the company added a 10th independent director.

eBay Inc., is a global technology company. The Company enables commerce through three reportable segments: Marketplaces, Payments, and GSI. Shares of EBAY remained unchanged at $52.66. In the past year, the shares have traded as low as $48.06 and as high as $59.70. On average, 12375400 shares of EBAY exchange hands on a given day and today's volume is recorded at 272706.