Thursday, March 20, 2014

Carl Icahn wants Ebay to offer PayPal IPO

Carl Icahn, Ebay, PayPal

Investor Carl Icahn has withdrawn his demand for eBay Inc. (EBAY) to spin off PayPal. Now, he wants 20% of PayPal to be offered to the public. PayPal is the online payment service of eBay.

eBay Inc. disclosed in their 4th quarter fiscal 2013 (4QFY13) earnings that Carl Icahn has a 2.2% stake in the company. He had nominate two individuals to the board of directors and he  has aggressively pushed for a spinoff of PayPal. He said eBay was hindering PayPal's growth, and said that they are damaging its competitiveness against current and potential rivals, that includes Apple and Google Inc.

However, eBay reiterated that the success of both eBay and PayPal depend entirely upon each other’s success, and that they were better off together. The war of words and mudslinging between them is still continuing.

eBay has also reacted strongly to Icahn’s accusations about bad corporate governance and the integrity of the board and has rejected his nominees.

Icahn said that PayPal and eBay should maintain close business ties, while forming independent boards. "EBay's 80% ownership of PayPal, and a commercially advantageous long-term contract between the two companies, would preserve any potential synergies," he said.

eBay replied: "We're glad to see that Mr. Icahn now seems to agree that a full separation of PayPal is not a good idea."

Monday, March 10, 2014

Mt. Gox Hiding $600 Million in Bitcoins Hackers Exposed

Mt. Gox, Mt. Gox hacked, Mark Karpeles

Hackers targeted the web accounts of MtGox boss Mark Karpeles. MtGox halted their trading last month and then filed for bankruptcy after they found out that $465m in bitcoins had been stolen through a security bug.

Investors are demanding for more information about the events and why they have lost their bitcoins.

The hackers gained complete control of Mr Karpeles personal blog and Reddit account. They used their access to steal very detailed information about trading activity at MtGox and then share it on the net. It is a 716MB file.

Some of the things that they have exposed are:
  •     More than one million trades in Excel spreadsheet
  •     Entries from MtGox's business ledger
  •     Information about its back-office administration software

The hackers included a message: "It's time that MtGox got the Bitcoin community's wrath instead of Bitcoin community getting Goxed."