Citation
Open Letter to eBay Shareholders
TL;DR
PayPal described as 'handcuffed to eBay's sinking marketplace'
The catalyst for eBay's controlled spinoff of PayPal. Icahn's letter articulated the conglomerate discount destroying shareholder value and forced the board to act. Demonstrates how external pressure can serve as a trigger event that initiates controlled calving before uncontrolled fracture occurs.
Key Findings from Icahn (2014)
- PayPal described as 'handcuffed to eBay's sinking marketplace'
- Demanded spinoff to unlock shareholder value
- eBay board responded same day with spinoff announcement
- Activist pressure accelerated controlled separation