eBay and PayPal are set to split into independent publicly traded companies in 2015, the companies have revealed.
Devin Wenig, president of eBay Marketplaces, will become CEO of new eBay company following separation, while American Express executive Dan Schulman joins PayPal immediately as president and CEO designee for PayPal.
“eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay president and CEO John Donahoe. “For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value.”
He added that together, the pair will be "sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets”.
“As independent companies, eBay and PayPal will enjoy added flexibility to pursue new market and partnership opportunities. And we are confident following a thorough assessment of the relationships between eBay and PayPal that operating agreements can maintain synergies going forward. Our board and management team believe that putting eBay and PayPal on independent paths in 2015 is best for each business and will create additional value for our shareholders.”
Donahoe will be responsible for leading the separation, alongside company CFO Bob Swan.
“Together, eBay and PayPal have delivered substantial value creation for our shareholders,” Donahoe concluded. “We believe eBay and PayPal will continue to do so as separate, independent companies. Tremendous opportunities exist for each business.”
Subject to approval, the split will take place next year and will provide shareholders with more targeted investment opportunities.