Icahn vs. eBay Board - Governance or Gamesmanship?
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.
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Since: Nov 13
#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 eBays 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 eBays 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 PayPals 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 ridingprecariously, at the pleasure of the retail bankson the backs of those retail banks existing payments systems.PreyPal has little more than one percent (~1.1%) of the worlds 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 pretendersparticularly the clunky "PreyPal" ...
The reality is that PayPals 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 eBays 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 Hos 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 BankeBay/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
#2 Apr 3, 2014
Customer First: The PayPal WayDavid 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 existingprofessionalpayments processors, MasterCard and Visa. And both these players have now launched their own professional digital wallets for on- and off-line use
PayPals increased holds on payees funds are a direct result of Visa/MasterCard and the banks becoming tired of having to habitually field complaints from their card users about PayPals 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 systema system without which PreyPal simply could not exist
However, notwithstanding the nonsense that PayPals 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 spinand 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 peoples 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
#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 buyereven 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 PayPals merchant account with Wells Fargo; for the same reason PreyPal has been much more aggressive with holds (sometimes lengthy) on payees 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 ReleaseDraftConfidential
It is with great sadness that eBays chief headless turkey, Johnny Ho, announces the anticipated incapacitation of eBays most ugly adopted daughter,PreyPal.PreyPal is about to be severely adversely affected by new, particularly virulent, strains of digital wallet: MasterCards MasterPass and Visas 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 PayPals 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 marketplaces 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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