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EBay CEO May Retire, Report Says

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The Associated Press

Published: January 23, 2008

SAN FRANCISCO - News that eBay chief executive Meg Whitman may retire comes as the online auctioneer faces slowing growth and disappointing returns from its $2.6 billion gamble on the Internet phone service Skype.

Whitman is preparing to retire after a decade at the helm, The Wall Street Journal reported in Tuesday's print editions. EBay spokesman Hani Durzy declined comment, calling the report "rumor and speculation."

The paper, citing unidentified people familiar with the matter, reported Whitman has increasingly delegated daily responsibilities and is working on a succession plan.

In October, eBay reported its first quarterly loss since 1999 after a $900 million write-down in the value of Skype, which it purchased in 2005 for $2.6 billion. EBay is to report fourth-quarter earnings today.

EBay's slowing revenue growth and Skype acquisition may have helped Whitman decide "it might be the right time for a change," said Scott Kessler, an equity analyst for Standard & Poor's. He said eBay has been outmaneuvered in recent years by Amazon.com.
EBay shares hit a 52-week low of $26.02 but closed at $27.13, down 4.24 percent from $28.33 at Friday's close.

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