eBay reveals loss on tax charge

Mr Icahn ultimately said that he would drop the PayPal strategy and withdraw his proposal to put two nominees on the board. In return, eBay will make David Dorman, chairman of CVS Caremark and founding partner of Centerview Capital Technology, the 10th independent director on the 12-member board. But Mr Icahn said he still believes eBay should spin off PayPal and said in a statement that he will seek confidential talks with the company.

Overall, eBay lost $2.33bn, or $1.82 per share, in the three months that ended March 31. That compares with net income of $677m, or 51 cents per share, last year. Excluding a $3bn tax charge, net income totaled 70 cents per share. Analysts expected net income of 67 cents per share.

Revenue rose 14pc to $4.26bn from $3.75bn. Analysts expected $4.23bn.

For the second quarter, the company expects adjusted net income of 67 cents to 69 cents per share on revenue of $4.325bn to $4.425bn. Analysts expect net income of 70 cents per share on revenue of $4.4bn.

For the year it expects adjusted net income of $2.95 to $3 on revenue of $18bn to $18.5bn. Analysts expected net income of $2.99 per share on revenue of $18.25bn.

Shares fell $1.74, or 3.2pc, to $52.80 in after-market trading. They ended the day up 90 cents at $54.54. The stock is down less than 1pc since the beginning of the year.

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