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.

Get more stories like this on TwitterFacebook

eBay Inc. connects millions of buyers and sellers globally on a daily basis through eBay, the world's largest online marketplace, and PayPal, which enables individuals and businesses to secu... All eBay news »

Track eBay's Landscape to stay on top of the industry. Access the entire ecosystem, track innovation & deals. Learn more.

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account ba... All Paypal news »

Track Paypal's Landscape to stay on top of the industry. Access the entire ecosystem, track innovation & deals. Learn more.