EBay reportedly keen to hive off PayPal
Online auction house eBay is reported to be considering spinning off its payments division, PayPal, as early as next year following the departure of the unit’s chief executive officer in June.
David Marcus is now an executive at Facebook but potential candidates to be his successor have been informed of the spinoff plans.
Any move to split the business would mark an abrupt about turn for the company which has previously resisted investor pressure to do so, claiming that both businesses dovetail closely with one another.
eBay spokeswoman Amanda Miller commented: "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. This position has not changed.”
Proponents of a split argue that a fully independent PayPal could grow faster and further by drawing custom from retailers who are not willing to get into bed with eBay itself.