09 February 2016

EBay ponders PayPal spin-off - report

22 August 2014  |  8111 views  |  0 PayPal logo

Shares in eBay rose nearly five per cent yesterday afternoon off the back of a media report that the online auction house could spin off its PayPal unit as early as next year.

Citing sources, tech site The Information says that eBay has been telling candidates for the role of PayPal president - vacant since David Marcus jumped ship for Facebook earlier this year - about the potential split.

The speculation saw shares in eBay rise 4.7% to $55.89 at the close of trading yesterday in New York.

The report comes despite the fact that eBay spent much of the year fighting off attempts by activist investor Carl Icahn to force such a spin-off. Ichan argued that that the auction site was hampering the growth and competitiveness of its payments subsidiary but eventually backed down.

In response to the new report, eBay issued a statement saying: "The EBay Inc. board and management team remain focused on maximizing shareholder value. As we discussed during proxy season and in our second-quarter financial results call, 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."

Former PayPal executive Keith Rabois has backed a split but has also floated an alternative - rebranding eBay as PayPal. Rabois told Bloomberg: "Change the logos, change the paint, change the T-shirts, and you get the same value basically as spinning off PayPal. Just rename the company. It's a really simple solution. You could do it in probably 24 hours."


Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

20 August, 2014
10 June, 2014
10 April, 2014
25 March, 2014
23 January, 2014

Related company news


Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
11631 views comments | 51 tweets | 44 linkedin
Digital transformation driving earnings at...
10051 views comments | 48 tweets | 40 linkedin
Visa opens up to developers
8229 views comments | 23 tweets | 41 linkedin
ECB eyes up European P2P payments
8072 views comments | 29 tweets | 39 linkedin
It may take ten years, but blockchain tech...
6913 views comments | 21 tweets | 19 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job