Carl Icahn, EBay trade accusations
San Jose, Calif. – Billionaire investor Carl Icahn and EBay are engaging in a public war of words that was ignited by an open letter Icahn sent to EBay shareholders on Monday, Feb. 24. In the letter, Icahn accused EBay CEO John Donahoe of ignoring conflicts of interest on its board and called for the company to spin off PayPal.
Icahn also disclosed he now owns 2.15% of EBay’s stock. The letter specifically alleged that board member Marc Andreesseen has personally gained by purchasing large stakes in former EBay subsidiaries and advised and invested in direct EBay competitors Boku, Coinbase, Dwolla, Jumio and Fab.
Icahn also claimed that Andreesseen was part of an investor group that purchased Skype from EBay for far less than EBay paid and then sold it at substantial profit to Microsoft 18 months later, and that Andreesseen gained from investing in online shopping platform Kynetic, which EBay sold back to its founders at a low price in 2011. As for Intuit founder and board member Cook, Icahn’s letter said Intuit is a direct competitor of PayPal because of its Go-Payment service. He called upon the entire EBay board to resign immediately, and said he will present a slate of candidates for EBay’s upcoming board of directors election.
In a press release dated Feb. 24, EBay responded to Icahn’s letter by saying it cherry-picked old and out of context news clips and anecdotes. EBay also said it has determined that its shareholders would be best served by keeping PayPal part of EBay and refuted all allegations of misconduct or incompetence against Andreesseen, Cook and Donahoe.
Dillard’s net income falls in Q4
Little Rock, Ark. – Dillard’s Inc. reported declining net income for the fourth quarter and fiscal year 2014. Compared to the same period a year earlier, Dillard’s reported a 26% decline in net income to $119.1 million from $161.4 million.
Net sales in the fourth quarter declined 3% to $2.03 billion from $2.1 billion, and same-store sales grew 2%. During the fiscal year, net income dropped about 4% to $323.7 million from $336 million, and net sales slightly declined to $6.53 billion from $6.59 billion. Same-store sales rose 1%.
Looking ahead, Dillard’s plans to open two new stores in October 2014: a 200,000-sq.-ft. location in The Shops at Summerlin in Las Vegas and a 180,000-sq.-ft. location in The Mall at University Town Center in Sarasota, Fla.
Dillard’s cited the extra week in the 53-week fiscal 2013 period, as well as one-time tax benefits and after-tax gains, as reasons for the year-over-year drop in net income.
ECommera completes $41 million funding round
London — ECommera, a provider of Big Data and omni-channel commerce solutions for retailers, has completed a $41 million Series C funding round. Dawn Capital led the round together with investors West Coast Capital, Frog Capital, EPlanet Capital, WPP and new partner Wti.
The funding will be used to advance global growth of a next generation "Decision Intelligent Commerce" solution built exclusively for retailers. This solution will combine Big Data predictive analytics with online, mobile and operational software to allow retailers to sell everywhere and fulfill from anywhere.
Notable customers include Asda, House of Fraser, Neiman Marcus, Brooks Brothers, Lifetime Brands, Bouclair, and Clarins.