FORTUNE -- Carl Icahn today ended his three-month old feud with eBay Inc. (EBAY), agreeing to withdraw his nominations for two board seats and his insistence that the company sell a minority stake in its PayPal unit back to shareholders (as you may recall, he originally wanted PayPal to be spun out into a separate company).
In exchange, Icahn and eBay have jointly agreed to add former AT&T CEO David Dorman to the eBay board of directors. Icahn also effectively becomes an insider, agreeing to sign a non-disclosure agreement covering any non-public information that the company and/or its board may share with him.
The meeting of the minds apparently was prompted by J.P. Morgan vice chairman Jimmy Lee, and followed a series of weekend conversations between Icahn and eBay CEO John Donahoe.
"As a result of our conversations, it became clear that Carl and I strongly agree on the potential of PayPal and our company," Donahoe said in a prepared statement. "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.
As for Icahn, he issued the following tweet (and will appear at 12:30pm on CNBC)
eBay shareholders, however, have not reacted quite so positively. Shares are down more than 2.7% in trading as of this writing, bringing the stock down to $54.36 per share. That's just a hair lower than the stock's $54.41 per share price on the day that Icahn originally disclosed his position. And 8.33% below where eBay shares traded on March 6, which was their 2014 high-water mark.
One thing Icahn likes to point out is how the companies he holds usually appreciate in value, whether or not his specific demands are met. In this case, however, it isn't happening. Maybe he shouldn't have clicked that "Buy it now" button...
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The differing tactics of two activist investors reveal boards with a lack of focus on corporate governance.
By Paul Hodgson
FORTUNE -- Hedge fund activists often have very different strategies from each other, and very different opinions about a company's fortunes. Take William Ackman's shorting of Herbalife (HLF), while at the same time George Soros, Daniel Loeb, and Carl Icahn all took long positions in the stock. But one element underlies most if not MOREMar 31, 2014 5:00 AM ET
Carl Icahn's issue with the online retailer isn't PayPal, but rather the capability and interests of its leadership and board of directors.
By Paul Hodgson
FORTUNE -- If your mother read about it in the Wall Street Journal, would she yell at you about it? That's the governance test used by Icahn Enterprises for the directors of the companies it invests in. The firm believes that the board of directors are MOREMar 21, 2014 5:00 AM ET
It may seem awkward, but is there anything actually wrong with a hedge fund manager bankrolling an all-out assault on a company?
Correction: March 10, 4:45 PM.
FORTUNE -- Bill Ackman really, really wants to prove that Herbalife is a fraud. That's not new. What's new is the lengths he is apparently going to to convince everyone, particularly regulators, that he is right.
On Monday, the New York Times detailed those efforts in MOREStephen Gandel, senior editor - Mar 10, 2014 2:59 PM ET
As it battles Carl Icahn, eBay makes a subtle change to its Skype sale history.
FORTUNE -- Yesterday I took issue with eBay's claim that its 2009 Skype sale was a "competitive process with multiple bidders including several financial and strategic buyers." Namely, because I can't find any evidence that strategic buyers actually submitted bids -- in large part due to litigation risks related to Skype's underlying intellectual property. Instead, the only MOREDan Primack - Mar 4, 2014 12:09 PM ET
Carl Icahn and eBay are locked in a contentious war of words. Unfortunately, they could both use an editor.
FORTUNE -- As you're no doubt aware, Carl Icahn set his sights on eBay Inc. (EBAY) late last month, arguing that the online auction company should spin off its PayPal business. eBay quickly demurred, saying that it had previously considered such a fissure but ultimately concluded that the two businesses are better together MOREDan Primack - Mar 3, 2014 1:53 PM ET
eBay CEO John Donahoe has discussed Carl Icahn with peers like Tim Cook and Michael Dell.
FORTUNE -- Carl Icahn wants eBay (EBAY) to spin off its PayPal subsidiary, arguing last month that separate management would improve the growth for both businesses. eBay management disagrees with Icahn, believing that its marketplace and payments businesses work better together than apart.
But there really are two strategic issues here. One is about eBay's future MOREDan Primack - Feb 18, 2014 4:34 PM ET
The billionaire investor's desire to see eBay spin off its online payment network, PayPal, could very well unlock significant shareholder value.
By Cyrus Sanati
FORTUNE -- Carl Icahn, the billionaire activist investor, has been interested in technology lately. Wednesday, he made several TV appearances to reiterate his call for tech giant Apple (AAPL) to engage in a massive $150 billion share buyback. As usual, he demonstrated that he was willing to MOREJan 23, 2014 3:15 PM ET
Activist wants eBay to spin PayPal off into a separate company.
FORTUNE -- Carl Icahn has his sights set on a Silicon Valley giant, and it isn't Apple (AAPL).
eBay Inc. (EBAY) this afternoon announced that Icahn has nominated two of his employees to its board of directors, and submitted a non-binding proposal to spin PayPal out into a separate business.
Icahn earlier this month acquired a 0.82% stake in eBay, as part MOREDan Primack - Jan 22, 2014 4:23 PM ET
In a banner year for activist investors, no one is doing better than Carl Icahn.
Time Magazine this week has Carl Icahn on its cover, arguing that he has become the most important investor in America. Not only because he's gently taking on the nation's most iconic tech companies, Apple Inc. (AAPL), but because he's got the best returns among a group of activist investors who are reshaping a stagnant corporate MOREDan Primack - Dec 5, 2013 8:01 AM ET
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