SAN JOSE -- After settling a bitter dispute with activist investor Carl Icahn on Thursday, eBay has some relief from scrutiny of its business decisions, which intensified just as the tech company is aiming for its most profitable year ever.

But the relief may be fleeting, some analysts say, because the agreement with Icahn doesn't resolve questions about whether two eBay board members have a conflict of interest, and if PayPal should become an independent company.

"Just because Carl Icahn struck this agreement doesn't mean the issue won't continue and someone else won't carry the mantle," said Scott Kessler, an analyst with S&P Capital IQ. "The situation is not completely over."

The two sides announced a deal Thursday that requires Icahn to retract his proposal to split PayPal from eBay, and in return eBay has agreed to Icahn's suggestion to appoint business executive David Dorman to the board of directors, expanding the number of independent directors to 10 on the 12-member board. Dorman, 60, is a founding partner of San Francisco-based Centerview Capital Technology and chairman of the board of CVS Caremark. Icahn will also withdraw his two nominees to the company's board, which eBay hotly rejected last month.

"As a result of our conversations, it became clear that Carl and I strongly agree on the potential of PayPal and our company," eBay President and CEO John Donahoe said in a statement.

Icahn tweeted that he was "extremely pleased about agreement with eBay. Believe it's a win-win for ALL shareholders."

Since January, Icahn has demanded that eBay sell PayPal, lobbed insults at Donahoe and called for new board members. The agreement ends a nasty feud that had begun to consume more resources and attention than eBay could afford, analysts say.

"At a time when eBay doesn't need to be distracted, Icahn can be a massive distraction," said tech analyst Rob Enderle of San Jose-based Enderle Group. "He's a disaster and they needed to stop him."

eBay should be focused on its annual shareholders meeting next month and the approaching deadline to hit certain lofty financial goals, not battling Icahn, analysts pointed out. The company wants to hit $18 billion in annual revenue by the end of 2014, which would mark a 12 percent increase over 2013, and investors will be looking for progress.

Dealing with Icahn is "probably consuming way more of their resources than they'd like," said Wedbush Securities analyst Gil Luria. "Anything that takes away from the CEO's time is a negative impact."

The eBay-Icahn duel is so far the biggest spat of 2014 between a tech company and a hedge-fund manager, but such contentious sagas are familiar territory to Icahn, who at age 78 is worth about $23 billion. The corporate swashbuckler has battled executives at movie-rental company Blockbuster, attempted to break up Time Warner and pressured Yahoo to sell to Microsoft in 2008. Some of his efforts have been more successful than others: Last year he took a 9 percent stake in Netflix, then sold half his shares after 15 months to make more than $700 million in profit. He spent six months pushing Apple to spend $50 billion on buying back its own stock, only to drop the proposal in February.

"He's kind of the gift that keeps on giving, and not in a good way," Enderle said.

Icahn first proposed that eBay spin off its PayPal payments business into a separate entity. He later called on eBay to release just part of PayPal in an initial public offering. He argued eBay was stifling PayPal's growth and hurting its competitiveness against rivals such as Google and Apple; eBay promptly rejected both proposals. Icahn has about 2 percent of eBay shares.

PayPal is the fastest-growing division of San Jose-based eBay, with revenue from the payments platform growing 19 percent from 2012 to 2013. Over the last decade, PayPal has seen year-over-year growth of between 14 and 47 percent.

"PayPal has been quite a powerful growth driver within the organization and I totally get why they don't want it separated," said Leslie Hand, research director of e-commerce at IDC Retail Insights.

But other big names in the tech and investing world have sided with Icahn. PayPal co-founder Elon Musk, former PayPal Chief Operating Officer David Sacks and Leon Cooperman, chief executive of hedge fund Omega Advisors, have also called for a PayPal spin-off. And, just hours after announcing the agreement with eBay, Icahn told CNBC he still desired to see PayPal split "at some point in the near future and (I) intend to continue to press my case."

Questions also loom about board members Marc Andreessen and Scott Cook, whom Icahn accused of having a conflict of interest. In 2005, eBay bought the video-chat service Skype for $2.6 billion, only to divest it four years later for about $2 billion to an investor group that included Andreessen's venture capital firm. Icahn has also accused Cook of conflict of interest because he founded Intuit, which Icahn says is a direct competitor of PayPal.

"Some legitimate points were made, and just saying that those two are amazing entrepreneurs and investors doesn't address all the questions people have about them pertaining to the board," Kessler said.

Contact Heather Somerville at 510-208-6413. Follow her at Twitter.com/heathersomervil.