EBay CEO Whitman preparing to retire: report

By Eric Auchard

SAN FRANCISCO (Reuters) - EBay Inc Chief Executive Meg Whitman, one of the most powerful women in business, is preparing to retire from the online auctioneer, The Wall Street Journal said on Tuesday.

EBay spokesman Hani Durzy declined comment.

The departure of the Silicon Valley veteran would come as one of the Internet's best-known companies tries to recapture the runaway growth that made it a household name connecting buyers and sellers through online auctions.

Whitman, 51, would also be following her own advice that no CEO should stay in the same job for more than a decade -- a philosophy that reflects the unassuming character that made her popular among the sellers who use eBay's auction site.

John Donahoe, the 47-year-old president of eBay's auction business unit, is the leading candidate to succeed Whitman, the newspaper said, quoting unidentified sources.

Wall Street analysts said Whitman's possible retirement would come as little surprise and the company faces a round of challenges that could benefit from new leadership. Views on Whitman's leadership in recent years were mixed.

"The buyside is sick of Meg," Tim Boyd of American Technology Research said of how some institutional investors' have wearied of waiting for turnaround measures to take hold. He advises investors buy the stock, which he says is worth $40 a share.

Shares of eBay fell as much as 7 percent in premarket trade amid a global stock market sell-off tied to fears that the U.S. economy is sinking into recession. The stock rebounded following a dramatic rate cut by the U.S. Federal Reserve. In afternoon trading on Nasdaq, the shares were down $1.04, or 3.7 percent, at $27.29.

But Martin Pyykkonen, an analyst with Global Crown Capital, said no groundswell of shareholder criticism has taken shape.

"Some investors think it's time for fresh blood and that eBay is going to be less of an auction company over time," Pyykkonen said. "Others think Whitman has done the best she can do with what she has." He rates eBay stock as "neutral."

Analysts have said eBay's business could prove durable in a downturn, as consumers use its sites to hunt for bargains.

The Journal report said Whitman's departure could be announced within weeks, although it added that the situation "remains fluid."

Whitman has been delegating more daily responsibilities and over the past year has taken an active role in the presidential campaign of Republican candidate Mitt Romney. Romney, Whitman and Donahoe all once worked at consulting firm Bain & Co.

AFTER A DECADE

EBay had only a few dozen employees when Whitman joined as president and CEO in early 1998, following a job overseeing marketing for Hasbro Inc toys like Mr. Potato Head. EBay's initial public offering came six months later.