Apple, the pioneer of “disruptive” technology just upset the apple cart again….or rather, the eBay cart. Its new release iPhone 6 has a payment option that is expected to rival the dominant Paypal, which for a long time was the undisputed leader in online payments. Carl Icahn has a stake in Paypal owner Ebay and Apple, and is likely going to benefit from the fierce competition between the two.
Icahn was pushing eBay management to spin off Paypal, which makes up the bulk of eBay’s valuation. He finally backed off from the demand, but not before calling out CEO John Donahoe’s “inexcusable incompetence.” Incompetent or not (maybe he just doesn’t agree with Icahn), eBay’s management has rejected a spin-off, citing the synergies between eBay and Payal that make them work better as a pair. However, some on Wall Street still predict eBay and Paypal may part ways eventually.
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Icahn increased his share of Apple by $1.65 billion in May, and he now has a total of 7.5 million shares of the tech giant.