On Tuesday morning, eBay Inc EBAY announced it will separate PayPal from the company next year.
Shares of eBay opened more than 7 percent higher, making millions for prominent shareholders like Carl Icahn, Yacktman Asset Management and Fir Tree Partners.
The split is expected to come in the second half of 2015, which both sides say will stimulate shareholder value.
So, what are traders and pundits saying about the news on social media?
Many discussed Icahn:
The $EBAY-PayPal split was always gonna happen eventually. This was no doubt conveyed to Icahn, which is why he chilled out. Not a cave.
— Michael Santoli (@michaelsantoli) September 30, 2014
Carl Icahn Just Made $180 Million This Morning . What about you ? ;-)
— Evert De Rijcker (@evertdr) September 30, 2014
EBAY +7.35% PRE - This represents a major victory to activist investor Carl Icahn
— Steve Collins (@TradeDesk_Steve) September 30, 2014
What a year for @Carl_C_Icahn
— Jennifer Ablan (@jennablan) September 30, 2014
@Carl_C_Icahn will begin taking credit for PayPal-eBay split in 3…2…1… http://t.co/oT4oWcHTkt pic.twitter.com/agMwf9gt9q
— Kara Swisher (@karaswisher) September 30, 2014
Josh Brown made a great point about Apple:
Earlier this year, Ebay execs fought vociferously against spinning PayPal. Everything changed when they got a look at Apple Pay.
— Downtown Josh Brown (@ReformedBroker) September 30, 2014
And some talked about eBay post-split:
Once PayPal is separated, what's the investment thesis for holding the legacy garage sale business? $EBAY
— Downtown Josh Brown (@ReformedBroker) September 30, 2014
TAKE PROFITS AND EXIT EBAY $EBAY $AAPL #APPLE PAY #PAYPAL http://t.co/4hjFAIRHud
— Nigam Arora (@TheAroraReport) September 26, 2014
EBay to separate PayPal business $EBAY http://t.co/HeHsqOIizO Scott: Without PayPal what is there?
— Scott Nations (@ScottNations) September 30, 2014
@jackneele Could be. I've always thought once PayPal accounted for a majority of $EBAY revenue a spin became logical. It's just about there.
— Michael Santoli (@michaelsantoli) September 30, 2014
Disclosure: At the time of this writing, the author had no position in the equities mentioned in this report.
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