(Ping! Zine Web Tech Magazine) – Online auction company eBay announced plans last week to break off its PayPal division into its own separate company.
The company stated in a press release that separating the companies will allow both eBay and PayPal to “capitalize on their respective growth opportunities” in their respective markets, creating “sustainable shareholder value.”
“A thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively,” stated eBay CEO John Danahoe. “The industry landscape is changing, and each business faces different competitive opportunities and challenges.”
The company noted that the “new eBay” will be led by current eBay Marketplace chief executive Debin Wenig.
PayPal’s tax-free split is expected to be complete in Q2 of 2015