The activist investor now owns 27.8 million shares of eBay and more than 7.5 million shares of Apple, according to The Wall Street Journal.
The activist investor will drop his proposal to split off PayPal, while eBay will appoint one of Icahn's nominees to its board.
The company wants investors to simply discard any proxy card sent to them from Carl Icahn in advance of the annual meeting in May.
In yet another open letter to eBay shareholders, the activist investor outlines a scheme in which the online marketplace sells off part of PayPal.
Reid Hoffman claims that Carl Icahn's idea of spinning out PayPal from eBay is short-term thinking that treats the payment platform as a "cash cow that's ready to be slaughtered."
In the latest episode of this online saga, Icahn demands an inspection of eBay's records on the Skype deal, while eBay again refutes Icahn's accusations.
The war of words between eBay and Icahn escalates as founder Pierre Omidyar jumps into the fray.
The activist investor lashes out at the board for alleged transgressions and at CEO John Donahoe's "ineptitude in addressing them." What's eBay's reaction?
After Apple's move to repurchase $14 billion in shares, the activist investor says it makes no sense to continue on with his buyback proposal.
Institutional Shareholder Services tells clients that the activist investor's buyback proposal is unnecessary in light of recent stock repurchases and dividend payouts.