With eBay decision, Carl Icahn proves his mettle, again

By Myles Udland

This is why you follow Carl Icahn. On Tuesday morning, eBay announced that it would spin off its PayPal unit in a deal that most investors hadn't expected until some time next year.

Earlier this year, Carl Icahn bought a stake in eBay and began agitating for the company to spin off PayPal. Icahn exchanged a series of letters with the company's management, questioning conflicts of interest among some board members and within the broader Silicon Valley community of investors.

Ultimately, Icahn relented, kept a stake in eBay, and agreed to support management.

But Icahn had spoken, and a few months later, after hearing nary a peep from Icahn on the status of his eBay investment, eBay spins off PayPal and the deal is a huge win for Icahn and all eBay shareholders.

In early trading on Tuesday, shares of the company were up about 8%.

And this is just the latest win on what has been a series of victories for Carl Icahn.