Icahn takes eBay stake, calls for PayPal spinoff; $5B buyback authorized

|About: eBay Inc. (EBAY)|By:, SA News Editor

In tandem with its Q4 results, EBAY discloses Carl Icahn has taken an 0.82% stake in the company, has submitted two board nominations, and is calling for PayPal to be spun off into a separate business.

Perhaps not coincidentally, eBay has also authorized a new $5B buyback, which raises its total authorization to $5.6B (good for repurchasing 7% of outstanding shares).

Q1 guidance is for revenue of $4.15B-$4.25B and EPS of $0.65-$0.67, below a consensus of $4.3B and $0.72. 2014 guidance is for revenue of $18B-$18.5B and EPS of $2.95-$3.00, largely below a consensus of $18.5B and $3.12.

EBAY +8.6% AH