All the sessions from Transform 2021 are available on-demand now. Watch now.


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.

VentureBeat

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member