eBay and PayPal to Split Into Two Separate Companies

eBay, The online marketplace site, has intended to separate the payments service PayPal, to operate independently as a public company in the second half of next year 2015.

ebay

eBay

The chief executive for “eBay” John Donahue, “a comprehensive strategic review showed that maintaining the site eBay and PayPal together, and after the year 2015 has become less useful of the two companies strategic and competitive.”

The figures indicate that the revenue service “PayPal” grow annually by 19 percent, which is twice as fast as compared to revenues of the parent company, “eBay”, this total revenues “PayPal” annual 7.2 billion dollars, while the estimated revenues “eBay” with 9.9 billion dollars, with the annual growth rate of 0.10 percent.

Paypal

Paypal

Some argue that this move represents a shift in the strategy of the company. It also Earlier this year began activist investor, Carl Icahn, the pressure on “eBay” for the sale of service “PayPal,” a plan opposed by the Board of Directors recently, but stopped doing so after failing to get enough support.

eBay Bought PayPal, which was founded in 1990, in 2002 for $1.5 billion, and now paypal is the fastest grown payments service, with more than 143 million active users by the end of the year 2013 – the highest rate 16 percent from 2012.

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