Carl Icahn Explains Why Apple Is 'Very Undervalued' And eBay Should Spin-Off PayPal

Billionaire activist investor Carl Icahn has taken a stake in eBay, nominated two directors to its board and is angling for PayPal to be spun out as a separate unit.

Why?

In an interview with Bloomberg Television's Trish Regan and Adam Johnson, Ichan explains:

"We've done a lot of work on eBay and we believe without question it's a no-brainer that PayPal should be spun off," he says, adding that eBay "hasn't don't as well as it should have ... there's no reason they should be together at this point."

He also talks about his interest in Apple, saying that "Tim Cook is doing a great job there," but he thinks Apple is "very undervalued" and the board should be buying back the stock to help the small investor.

Icahn currently owns $3 billion worth of Apple including $500 million more he bought on Wednesday.

He's been pushing Apple to commit to a $50 billion buyback.

He explains:

"I'm almost talking against myself when I talk about Apple because it's almost ludicrous to me that they don't use a lot of their money to keep buying that stock. And they're letting guys like me buy it."

Here's the full interview: