eBay today announced plans to spin off PayPal and form two separate, publicly traded companies in 2015.
With this news, eBay says American Express exec Dan Schulman will immediately become PayPal’s president and “CEO designee.” Following the separation, current eBay chief John Donahoe will be replaced by eBay Marketplaces president Devin Wenig.
Today’s announcement follows a long feud between eBay and activist investor Carl Icahn on the matter. Mirroring one of Icahn’s original arguments, eBay states that due to “different competitive opportunities and challenges” faced by eBay and PayPal, “keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively.”
“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,” the company’s press release reads.
eBay originally acquired PayPal for $1.5 billion in 2002.