United States

EBay shares surge 12 percent after activist investor calls for breakup

Ebay may want to slim down to boost its stock price. That, at least, is according to Paul Singer’s Elliott Management, which argued on Tuesday that a spinoff or sale of its StubHub and classifieds businesses could cause the company’s stock to more than double to $63 a share. Ebay shares soared as much as 12 percent on news of Elliott’s stake after falling more than 20 percent over the past year. Recently they were up roughly 8 percent at $33.41 in midday trades Tuesday. The $34 billion hedge fund argues that eBay has been “distracted” by these non-core endeavors while rivals — both large and small — have gained market share in the San Jose, Calif-based company’s core online retail business. “As the broader internet ...