PayPal spinoff on the agenda for eBay

89

Online auction site eBay is considering a spinoff of PayPal, its fast growing payments unit, sources told The Information.

The e-commerce giant owns PayPal and told potential candidates for the position of PayPal chief executive about the possible spinoff, which could occur as soon as next year.

Previous PayPal chief executive David Marcus left the post in June to work at Facebook.

Ebay spokesperson Amanda Miller said the board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal.

Some investors believe that an independent PayPal can grow by attracting online retailers wary of eBay.

If the report is correct, it would mark a shift in attitude by current eBay chief John Donahoe, who has resisted a campaign by activist investor Carl Icahn to make such a move.

Advertisement
Kye began his career at a Fairfax daily on the North-West Coast of Tasmania. He has since taken his belongings, and keen interest in technology, to Melbourne. He has a bachelor of Arts majoring in Political Science from the University of Tasmania and a Graduate Diploma in Journalism from RMIT University.

We Recommend

FROM AROUND THE WEB