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eBay to spin off PayPal into separate public company in 2015

eBay will spin off its online payment division PayPal into its own separate, and publicly traded, company sometime in the second half of 2015. eBay claims that keeping PayPal around beyond 2015 "clearly becomes less advantageous to each business strategically and competitively."

eBay acquired PayPal for $1.5 billion way back in 2002. In announcing today's separation, eBay said:

Creating two standalone businesses best positions eBay and PayPal to capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape, and is the best path for creating sustainable shareholder value.

Devin Wenig, who currently serves as eBay's Marketplaces leader, will become the new CEO of the company when the PayPal spin off is complete. Dan Schulman, previously the president of American Express's Enterprise Growth Group, has been named as President of PayPal and is currently scheduled to be its CEO when the two companies part ways.

Do you think it is a good decision for eBay and PayPal to separate?

Source: eBay

63 Comments
  • Why God why
  • For starters, PayPal will raise billions by becoming a publicly traded company. They will be able to use that capital to expand and enhance the business. Additionally, PayPal will be able to make more money if they are a standalone company. In that sense alone, it makes sense.
  • Why not? PayPal should've been operating as a separate company for a few years now.
  • Dumb
  • Lawl didnt know ebay owned paypal..doesnt matter To me :B
  • To be honest me neither xD
  • I don't even care
  • What's the expansion of LTTG?
  • LeTiTGo
  • Like a boss ;)
  • Like it should have been from the get go
  • Like it was before 2002 when eBay bought Paypal.
  • Can't see why that is a bad idea.
  • As long as nothing really changes with PayPal, I'm fine with it.
  • They might like to start by updating their app for Cyan as it's not working with the current version
  • Even when the app worked, I just used the PayPal website in IE on my phone. Why clutter up my phone with a bunch of apps when the website works just fine?
  • for me an app is more convenient but yeah i understand if u have a low memory phone u wouldn't want alot of apps taking up memory
  • I've got a Lumia 1520. It's not about memory (or even storage, which is what I think you meant). It's about one stop shop, IE, versus a bunch of apps. I rarely use an app that duplicates functions available on the web.
  • Same here. I only use apps when I need the notification for it's services (like Facebook, etc). Things like ebay, paypal, etc can be handled by IE since I only open it when I need it.
  • Yeah I did mean storage but as it's nearly 1am in Aussie I'm a bit tired. I get what ur saying, n each to his/her own I guess
  • Ah, in Canada I'm still trying to convince myself to get out of bed. Have a good night. :-)
  • No worries, have a good day ;)
  • Not exactly sure how this is WP related or even Microsoft related at all.
  • Whatever, if the article adds a bit knowledge to you...
  • Which is why they filed it under apps. Both eBay and PayPal have a Windows Phone app.
  • Slow news day maybe.
  • Not even worth a comment
  • Yet you did.
  • Just buy them both, Microsoft..
  • Well, it wont be the first time Microsoft will be buying a Spinoff from eBay. They bought that useless Skype from eBay some years back to force Skype to support Windows Phone. That's the reason Skype has remained awful on WP till now. They were forced into the relationship. Skype was almost not worth the amount Microsoft paid, just like that face guy wasted 16 billions on Whatsapp!
  • PayPal app on WP is complete trash.
  • Wish they'd fix security token support
  • Hopefully this means alternative less greedy forms of payment will be available on eBay.
  • I was thinking the same thing but I wouldn't count on it. Hope eBay sellers don't take a hit since that my husband's side business.
  • I would imagine eBay sellers would still take any form of payment. I think on EBay side this is actually a good thing as other forms if payment like Google Wallet and Apple payments can be utilized. This could help drive down some of PayPal's ridiculous overcharges. Its a win win for everyone.
  • Yeah I'd like to see Google Wallet there :) much easier approach
  • But what do you mean by overcharges? I never noticed such thing?
  • eBay was PayPal main source form of payment and with that came their own charges for each transcation sellers came out of pocket for. If allowing more payment options this would drive competition for payment merchants and could create lower cost for sellers having to pay for in fees. eBay is big business. So was PayPal, but that could all change. The buyers are never affected but sellers always paid transaction fees. 
  • Very true, those PayPal fees are killer. If this can drive those down it will be wonderful. Bad enough that where I'm at, local thrift stores and pawn shops have taken to charging "eBay prices" on used goods because they don't understand that eBay prices are what they are due to the PayPal fees and shipping.
  • I see, Thanks for explanation. :)
  • I think it's more so PayPal can compete with other online electronic payment methods, rather than to change eBay. If it's not an eBay company it'll be more accepted vs Square, Apple Pay, Bitcoins and all the rest. As for eBay, I doubt there'll be much change.
  • I agree on that point
  • Devin wenig or something who currently works for eBay, will now work for PayPal. I dont think anything is changing really though is it.
  • Can you please stop with these leading comments at the end of your articles, it looks so cheap and desperate for comments. People like this site and the content you provide and the comments are already better than those found on most other sites, there's really no need for such cheap tactics. "Do you think it is a good decision for eBay and PayPal to separate?" People would be discussing that quite easily without leading us like sheep to water. And for the rest of todays' articles:- "What do you think about Microsoft's investment in India?" "What do you guys think is a good price for the Lumia 730 in India? Let us know in the comments below." "What is your opinion on the new MSN.com?" "Let us know what you think of the update to Health & Fitness and if you see other new changes." "What do you think of these latest app download statistics and the rise of in-app purchases for Windows Phone apps?" "All four of these devices will be out sometime in November. What do you think of these rock bottom prices for Windows 8.1 notesbooks and tablets?" Obviously it's your company policy, but I'm sure you can do it in a less subtle way.
  • Eat some Buccee Beaver Nuggets and ctfd
  • And while you're at it add a feature to allow us to hdie comments from people who we deem immature and their words pointless.
  • When you put all these comments together it does sound kind of annoying :D but okay, I don't really read them anyways. I already have my comment ready.
  • Well I am usually half way through and article and thinking what I want to comment myself, then I see those unnecessary tags at the end and it annoys me (more than it should maybe). It's just an insult to the intelligence of their readers and frankly puts me off even wanting to comment. It is one of the reasons I stopped going to wmpoweruser. I just looked at AndroidCentral and noticed a some of the articles there also had this at the end, so it's obviously a company policy across all Mobile Nations sites. This is a good site, it has good articles and good authors, it does not need this desperate and condescending plea for comments.
  • Those questions fire up a discussion. And if you write an article without firing up a discussion after, you suck at writing.
  • Or you suck at writing if you can't fire up a discussion without those questions. Ok I'm joking :) but what if its true?
  • As they say "it's funny cos it's true". So if it was a joke, I think it's a spot on one. You should be able to write a good enough article that it natually sparks discussion. You don't need that desperate plea at the end to comment. We know sites like this get their revenue through clicks and views and comments, write good enough articles and you'll get that. Talk down to your readership and they will eventually leave.
  • Couldn't agree more!
  • Goodpoint!
  • I hate PayPal. I owe them $160 but they will never get it from me.
  • Hope we keep the integration? At least those who likes it.
  • I just wished that Ebay wouldn't charge the 10% selling fee, I mean good god when you sale something that's 500$ you pay 50$....
  • Ahh I get it now
  • Plus PayPal fees. And its ridiculous they charge you a fee on shipping also.
  • agreed. 10% is insane amount for them. i stopped selling on there
  • Absolutely ridiculous for a company of that size to be charging such a high % in fees. I went to sell a $500 item the other week on ebay and cancelled it once I realised what the fees would be.
  • Yes they should split so I can finally have the option to use PayPal on Amazon. I mentioned this about a month ago on PayPal's survey. I wrote that I absolutely will not shop at eBay, because their customer service sucks, and prefer Amazon.
  • Bring PayPal Here mobile app and CC swiper to Windows Phone and BlackBerry.
  • Finally. Maybe Amazon will come to accept PayPal. I can only hope. Of course, you can always get a PayPal card, but using PayPal itself is so convenient.