Despite spending much of the year informing the public while its two business co-habit together and even resisting previous pressures to split up, eBay Inc has announced that by the middle of 2015 eBay Marketplace and PayPal would be spun-off into differently traded public companies.
The move according to Current CEO, John Donahoe is as a result of PayPal’s annual revenue which is growing at 19%, almost twice as eBay’s 10%. PayPal is currently available in over 203 countries and is expected to process around One Billion Mobile payments this year.
Most analysts reckon the move will give PayPal more autonomy to compete in the payment space with the recently announced Apple Pay, Alibaba’s Alipay and other emerging mobile wallet providers.
The move will see current CEO of eBay Marketplaces John Donahoe step down as CEO and current American Express co-executive Dan Schulman will take over as the new President and Chief Executive of PayPal whilst Current president of eBay Marketplaces, Devin Wenig will continue to take control as the new Chief Executive of eBay.
Source – eBay
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