Tomahawk, WI 02/20/2014 (BasicsMedia) – EBay Inc. (NASDAQ:EBAY) released its solid fourth quarter results declaring net income of $850 million, earnings per share of $0.81 and revenues of $4.5 billion up 13% compared to the same quarter last year and its PayPal segment grew its revenues by nearly 20%. Although EBay’s financial results have definitely made its investors happy but what has given its investors a cause to worry is the fact that activist investor Carl Icahn has acquired around 0.82% stake in the company with the intention to separate PayPal from EBay, which is not a good sign for management of EBay.

EBay’s PayPal division

EBay Inc. (NASDAQ:EBAY) acquired the online payment portal PayPal in 2002 and since then PayPal has generated high revenues for EBay and has become one of its fastest growing division however, investor Carl Icahn, who has acquired stake in EBay, has shown his willingness to split PayPal from EBay into a separate company. The management at EBay has strongly rejected Carl’s proposal stating that it would be beneficial for EBay to keep PayPal under its wings as PayPal’s income comprises around 41% of EBay’s revenues and therefore there is no need to separate the two. Even majority of analysts are against separation of PayPal from EBay as they have opined that PayPal and EBay Inc. (NASDAQ:EBAY) together form an invincible pair and separating these two would only lead to a fall in EBay’s revenue which would thereby hurt market value of EBay’s stock.

EBay’s acquisition

EBay Inc. (NASDAQ:EBAY) has recently acquired a company called PhiSix which specializes in the technology which turns pictures of clothing into 3D models which can be virtually tried on by consumers through their virtual avatars to know whether a particular clothing will fit them or not. To use this facility all a customer needs to do is to feed their basic sizes into the system which will then created a virtual avatar of the customer in #D and the clothing can be tried on that avatar to find out whether it fits him or not. This new technology is a sure shot winner for EBay as it will help its consumers to correctly pick their respective sizes thereby resulting in a rise in clothing sold on its portal. EBay Inc. (NASDAQ:EBAY) will make this technology available to third party retailers soon which will lead to higher consumer satisfaction and higher revenues for EBay!

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