Icahn vs. eBay Board - Governance or ...

Icahn vs. eBay Board - Governance or Gamesmanship?

There are 3 comments on the The Motley Fool story from Apr 2, 2014, titled Icahn vs. eBay Board - Governance or Gamesmanship?. In it, The Motley Fool reports that:

In the letter, the world's most successful activist investor opines that he views the upcoming annual meeting at eBay as a "watershed moment" for shareholders everywhere.

Join the discussion below, or Read more at The Motley Fool.

Since: Nov 13

Sydney, Australia

#1 Apr 2, 2014
Notwithstanding that I am otherwise a vociferous critic of eBay, this time I have to agree with Johnny Ho that eBay should not let go of “PreyPal”. Without its existing integrated relationship with the eBay marketplace, the value of the clunky “PreyPal” would be reduced greatly (eBay actually generates ~30% of PayPal new users with no customer acquisition costs for PayPal and half of PayPal's profits come from transactions on eBay where “PreyPal” is well integrated and virtually mandated); and, worse still, without “PreyPal”, the value of the eBay marketplace would be reduced by some 40%(“PreyPal” currently contributes ~42% of eBay’s profits)…

I hate to admit it, but for once Johnny Ho has got it right; no doubt Carl Icahn is correct in many of his other criticisms of Johnny Ho and eBay’s BoD but with respect to “PreyPal” he clearly has no understanding of the value of the inextricable and mutually supporting nature of the incestuous relationship between these two clunky, disingenuous, unscrupulous, commercial entities, and in particular, the precariousness of the basis of PayPal’s clunky business model …

Notwithstanding the amount of disingenuous nonsense that constantly steams from the eBay Dept of Spin, PayPal is a clunky middleman, in the main riding—precariously, at the pleasure of the retail banks—on the backs of those retail banks’ existing payments systems.“PreyPal” has little more than one percent (~1.1%) of the world’s total payments business (and even then much of its payers’ funds are sourced via MasterCard/Visa); the “bankcards”, MasterCard and Visa, have ~90% of the payments market between them and Amex has another ~8%.

Then there is “PreyPal” at physical point of sale?—LOL …

But even more serious for “PreyPal” is that both MasterCard and Visa have recently launched their own “professional” mobile/plastic, POS/online, digital wallets: MasterCard's "MasterPass" and Visa's "V.me". Undoubtedly these two new professional entrants will ultimately stifle most of the parasitic middlemen payments pretenders—particularly the clunky "PreyPal" ...

The reality is that PayPal’s “best before” date is approaching; as a “stand-alone” operation that “best before” date would simply arrive even sooner …

Regardless, none of the above can outweigh the fact that eBay’s Johnny Ho is otherwise a talentless, destructive, narcissistic sociopath and that under his direction eBay Inc. is proceeding apace down the toilet and is undoubtedly ultimately going to finish up at the sewage farm …

Still, as long as Carl Icahn continues to dig his spurs deep into Johnny Ho’s flanks and I can watch Johnny being made to dance, for me, all is well in the world …

“Never ever hire an MBA; they will ruin your company.”—PayPal founder, Peter Thiel

The ugly reality of eBay Inc.:
eBay's crooked auctions marketplace ... http://bit.ly/11F2eas
eBay Motors (UK sampling): Auction Fraud Galore ... http://bit.ly/I2gTEU
eBay Motors XSS Redirect Scams in Action: video ... http://bit.ly/1d46NvE
Barclays Bank–eBay/Gumtree Motors Scams … http://bit.ly/1c9Uwck
eBay's clunky, unprincipled "PreyPal" ... http://bit.ly/UVXx53
The ongoing joke of eBay Inc.... http://bit.ly/YvxFEg
Fun quotes from the eBay executive suite ... http://bit.ly/12xvzyA

Since: Nov 13

Sydney, Australia

#2 Apr 3, 2014
“Customer First: The PayPal Way”—David Marcus (2013)...

Now that is a truly frightening scenario ... http://bit.ly/17BbUGH

The fact is that “PreyPal” is little more that a credit card merchant account operator (and a “pretend bank” with no FDIC cover for users’ funds) with the infamous Wells Fargo Bank (and a few other front banks like Bancorp and the Utah-based WebBank) and is a clumsy middleman with no dynamic access to payers’ funds in the real banks other than via the existing—professional—payments processors, MasterCard and Visa. And both these players have now launched their own professional “digital wallets” for on- and off-line use …

PayPal’s increased holds on payee’s funds are a direct result of Visa/MasterCard and the banks becoming tired of having to habitually field complaints from their card users about PayPal’s unsatisfactory customer support, and unsatisfactory transaction mediation, and there is nothing “PreyPal” can do to improve the latter because they are simple a middleman, an extra (and now superfluous) layer on the existing system—a system without which “PreyPal” simply could not exist …

However, notwithstanding the nonsense that PayPal’s Marcus talks, you (still) have to involve the media to get any satisfactory customer service out of “PreyPal”(or eBay), you know that Marcus is indeed talking disingenuous spin—and “PreyPal” is fast approaching its “use by date”…

Goodbye clunky “PreyPal”, it has not been nice knowing you …

“And we never ever, ever lost sight of the fact that we look after people’s money – we have a great responsibility to keep funds safe and protected from the bad guys – no one does this at the scale we do, in the number of countries we operate in, dealing with the number of regulators we have.”—David Marcus (2013)

More nonsense and, as usual, whenever an eBay/PayPal spokesperson moves their lips, they are, invariably, being disingenuous ... http://bit.ly/UVXx53

Since: Nov 13

Sydney, Australia

#4 Apr 3, 2014
PayPal: Payment Transaction Dispute Moderation

Non-defense of credit card charge-backs …

The credit card transaction dispute moderation process provided by the real banks is fair and balanced and probably the best we can ever expect to get; I have experienced such moderation as both buyer and business seller and have no complaints. The problem for a seller with a credit card charge-back via “PreyPal”(and possibly via any of the other payments pretenders who operate, like “PreyPal”, as little more than credit card merchants with their own retail bank) is that, unlike the credit card companies,“PreyPal” will not invest in the human resources necessary to defend such a charge-back by a buyer—even if it is defensible; they will simply deal with the matter in the most cost effective way for them, and that is to acquiesce to the chargeback and let the payee carry the can. The reality is, anyone that accepts payments via “PreyPal” does so at their peril …

The suggestion is that this most unprofessional situation has been brought about by the credit card companies putting “PreyPal” on notice that they are not happy with all the extra transaction dispute moderation work that “PreyPal” has been creating for them with the apparently increasing number of charge-backs (no doubt principally eBay related) being instigated by payers on PayPal’s merchant account with Wells Fargo; for the same reason “PreyPal” has been much more aggressive with holds (sometimes lengthy) on payee’s funds, in anticipation of any possible charge-backs …

Regardless, the lesson is, if you are a buyer using “PreyPal”, never allow “PreyPal” to access your funds by direct debit from a bank account; if you do, you have no protection at all from “PreyPal”; if you are a seller, all you can initially do is cross your fingers …

PayPal Media Release—Draft—Confidential …

“It is with great sadness that eBay’s chief headless turkey, Johnny Ho, announces the anticipated incapacitation of eBay’s most ugly adopted daughter,‘PreyPal’.‘PreyPal’ is about to be severely adversely affected by new, particularly virulent, strains of digital wallet: MasterCard’s ‘MasterPass’ and Visa’s ‘V.me’, in addition to financial institutions’ displeasure due to ‘PreyPal’ transactions resulting in far too many credit card charge-backs, and also much ‘PreyPal’ merchant/payee dissatisfaction regarding PayPal’s utterly unprofessional transaction dispute mediation process (or total lack thereof) and arbitrary (unlawful) holds on payees’ funds.

“‘PreyPal’ may therefore be expected to soon begin to deteriorate in health and, if ultimately not completely incapacitated, will most likely be eventually confined to servicing what little there will be left, by then, of the Ho-devastated eBay marketplace, and to being the merchant account provider of last resort for those small online sellers that do not have the confidence of their own retail banker.

“There is no cure this condition, and Johnny Ho is particularly saddened by the inevitability that, in the not too far distant future,‘PreyPal’ will be unable to continue to underpin the eBay marketplace’s atrophying sales and stagnating revenues (albeit counterbalanced by ever increasing, percentage wise, FVFs).” http://bit.ly/UVXx53

“The band continued to play on, even as the bow dipped lower and lower.”—The Titanic/eBay Story ... http://bit.ly/YvxFEg

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