Finally, eBay and Paypal have officially become two different companies. The online retailer and payment company under the eBay Inc have been together since the Paypal was acquired by eBay in 2002.
Both companies announced the spilt in 2014 in order to focus the two companies on making profits separately but it has just become official today (17 July 2015). Paypal would start trading on the Nadaq on Monday with the moniker ‘PYPL’ while eBay would keep trading under the ‘EBAY’ name.
Before their split, eBay Inc is said to be worth a joint $76 Billion with Paypal contributing up to 60% of that amount. Now that both companies have split Paypal has a market value of around $45 Billion and eBay with the remaining $30 Billion.
eBay faces stiff competition from the likes of Amazon, Etsy and other online retailers which have all grown prominent over the past few years. Paypal also has issues of its own as it has to contend with the likes of Apple Pay, Android Pay, Samsung Pay, AliPay and several other online payment solution from different companies.
Devin Wenig would replace CEO John Donahoe as the President of eBay while Dan Schulman will be the President of Paypal. Donahoe would leave the board of eBay and join Paypal as the Chairman Board of Directors.
Source: Yahoo News
