It’s a good day to be Carl Icahn.
The famed activist investor has been going after eBay for a while, urging it to spin off its PayPal business.
And now, they are doing it. EBay announced Tuesday morning that in 2015 PayPal would be spun off and traded separately. Current eBay investors will own shares in both companies after the spin is complete.
PayPal is the giant of online payments, and it’s also the fastest-growing part of the business, so there’s a belief that investors will pay a juicy premium for its shares when unencumbered by the traditional eBay business.
So how’s Icahn doing Tuesday? Not bad.
He owns just over 30 million shares in the company, according to data from Bloomberg. EBay shares are already up about six bucks a piece. So that’s a $US180 million payday for Icahn. Well done!