New York -- As part of minority eBay shareholder Carl Icahn’s ongoing battle to separate eBay from sister company PayPal, the activist investor on Wednesday urged fellow eBay shareholders in an open letter to sell 20% of its PayPal unit in an IPO.
The latest move, which Icahn said would prompt a stand-alone PayPal while preserving the synergies between the pair of companies, is softer than Icahn’s January announcement that he wanted a full spinoff of PayPal from eBay.
Icahn’s latest stance is more aligned with eBay, which has repeatedly said that both businesses are better off together.
"We believe conducting a 20% IPO of PayPal — and creating two dedicated and highly-focused independent businesses — will provide the best opportunity for these businesses to remain competitive over the long-term," Icahn wrote in the Wednesday letter. Icahn owns more than 2% of eBay shares.