Activist investor Carl Icahn has dropped his call for eBay to sell its payments business, PayPal.
The billionaire had been trying to gather support for the proposed split before the e-commerce giant's annual shareholder meeting in May.
But Mr Icahn, who first made the call in January, said it had become clear that several major shareholders would not back the plan.
However, he said he still believed in the merits of a PayPal spin-off.
"I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future," he said in a statement.
As part of the agreement reached on Thursday, Mr Icahn, who owns a 0.8% stake in the firm, has also withdrawn his proposal to add two of his own nominees to eBay's board.
Criticism
But in a concession to the investor, eBay said it would follow his recommendation of adding David Dorman, a founding partner of investment firm Centerview Capital Technology, as an independent director on its board.
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