Carl Ichan just tore into EBay with an open letter
Activist investor Carl Icahn has just put out a new letter, and his target is EBay, which he accuses as having "multiple lapses in corporate governance."
Icahn says that he has "recently accumulated a significant position in EBay" as "there is great long-term value in the business."
But things aren't all that rosy at the online auctionhouse, says Icahn.
We have found ourselves in many troubling situations over the years, but the complete disregard for accountability at eBay is the most blatant we have ever seen.
Indeed, for the first time in our long history, we have encountered a situation where we believewe should not even have to run a proxy fight to change the board composition.
Rather, we believe that in any sane business environment these directors would simply resign immediately from the eBay Board, either out of pure decency or sheer embarrassment at the public exposure of the extent of their self-serving activities.
The investment guru also calls out independent director Marc Andreessen, as several transactions "lead us to question his loyalty to EBay."
"During Mr. Andreessen’s time on the eBay Board he has purchased large stakes in two former eBay subsidiaries, reaping significant personal riches," says Icahn.
Icahn again urge shareholders to vote in favour of a proposal to separate EBay from PayPal, as "PayPal is at a critical point in its development and that the payments market is rapidly evolving around it."
Do not allow PayPal to be, in the words of Elon Musk, “cut to pieces” because it remains part of eBay.