Activist investor Carl Icahn says eBay is the worst-run company he’s ever seen. The billionaire who regularly clashes with tech’s biggest CEOs told CNBC’s Squawk Box that eBay’s corporate governance leaves a lot to be desired. “Corporate governance, with exceptions, is completely dysfunctional,” he said in a phone interview on the show. “Our companies are so badly run, in many cases, that all you have to do is get in there, get involved with these boards, change a lot of things going on, and you have a much better company.”
Icahn’s conflict with eBay centers around the video chat service Skype. eBay sold a controlling stake of Skype to an investor group that included venture capitalist Marc Andreessen for $1.9 billion in 2007. Andreessen proceeded to sell Skype to Microsoft for $8.5 billion 18 months later. In one of several open letters to eBay shareholders, Icahn accused Andreessen of a conflict of interest and eBay of general incompetence for initially selling Skype for such a low figure.
Andreessen defended himself in an interview with the Wall Street Journal, saying that he regularly recuses himself from board conversations where he might have a personal stake in a public company buying or selling a startup. eBay chairman and founder Pierre Omidyar said in a statement that Andreessen wasn’t involved in the Skype sale.
On the Fox Business News show Opening Bell, eBay CEO John Donahoe responded to Icahn’s rant directly. He said the company was on “solid ground” when it comes to to corporate governance. “We know this is sort of the antics that Carl uses and that’s fine,” Donahoe said. “Our focus is doing what we want and what shareholders, the other large shareholders, want us to do, which is stay focused on innovating and executing in the market.”
Icahn will likely keep the pressure on eBay in the leadup to the company’s annual shareholders meeting in April. In addition to demanding more information about the Skype deal, Icahn is pushing for eBay to spin off its online payments service PayPal.
Story updated to include comments from eBay CEO John Donahoe.
- Volodymyr Zelensky and the Spirit of Ukraine: TIME's 2022 Person of the Year
- Mickey Guyton Is TIME's 2022 Breakthrough Artist of the Year
- The 10 Best Nonfiction Books of 2022
- Column: What Elon Musk Gets Wrong About Free Speech
- The Forgotten Story of One of the First U.S. Soldiers Killed Overseas After Pearl Harbor
- Why You're More Likely to Get Sick in the Winter, According to New Research
- Column: What the Protests Tell Us About China's Future
- 18 Last-Minute Gifts for Everyone on Your List