EBay CEO Whitman to Step down

Meg Whitman will soon step down as chief executive of eBay Inc., the online auction company that went from wobbly startup to multibillion-dollar household name in her 10-year tenure.

Whitman, 51, had been reported to be plotting the move and handing the job to John Donahoe, 47, who has been heading eBay's core auction and e-commerce businesses. She confirmed her March 31 departure as eBay reported fourth-quarter earnings Wednesday.

Whitman will remain on eBay's board of directors.

"With humor, smarts and unflappable determination, Meg took a small, barely known online auction site and helped it become an integral part of our lives," Pierre Omidyar, eBay's founder and chairman, said in a statement. "We're all enormously grateful that Meg dedicated herself to stewarding eBay through its 10 most formative years."

Whitman reminded analysts in a conference call that she has often said that 10 years is about as long as any CEO should serve. She said coming to eBay was a "remarkable opportunity" that has "exceeded all my expectations." The experience also has made Whitman, eBay's third-largest individual shareholder, a billionaire.

"It's time for eBay to have new leadership, a new perspective and a new vision," she said. "It's tough to stay fresh after ten years, no matter who you are."

EBay shares rose $1.81, 6.7 percent, to close at $28.94 in advance of the earnings report and before Whitman's announcement. In extended trading, the stock initially rose but then retreated to $27.55.

The announcement of Whitman's departure came as eBay reported a 53 percent gain in fourth-quarter profits due to a strong holiday season. It beat Wall Street's expectations, though its future guidance was tepid.

The San Jose-based company said that in the last three months of 2007, it earned $530.9 million, or 39 cents per share. In the same period a year earlier, eBay earned $346.5 million, 25 cents per share.

Revenue in the quarter rose 27 percent to $2.18 billion.

Excluding stock-option expenses and other charges, eBay said it would have earned $611 million, or 45 cents per share.

By that measure, analysts surveyed by Thomson Financial had been expecting eBay to earn 41 cents per share. EBay also exceeded Wall Street's revenue projection of $2.14 billion.

Whitman said she was pleased with the results, which ended "a remarkably strong year."