09 December 2016
Visit aciworldwide.com

EBay ponders PayPal spin-off - report

22 August 2014  |  8489 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."

KeywordsE-COMMERCE

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

PayPal taps Venmo for one-touch in-app payments

PayPal taps Venmo for one-touch in-app payments

20 August 2014  |  6931 views  |  0 comments | 17 tweets | 13 linkedin
PayPal president Marcus quits for Facebook

PayPal president Marcus quits for Facebook

10 June 2014  |  5271 views  |  1 comments | 12 tweets | 9 linkedin
Icahn backs down in eBay spat over PayPal spin-off

Icahn backs down in eBay spat over PayPal spin-off

10 April 2014  |  3902 views  |  0 comments | 4 tweets | 1 linkedin
EBay urges shareholders to reject Icahn's PayPal spin-off plan

EBay urges shareholders to reject Icahn's PayPal spin-off plan

25 March 2014  |  3435 views  |  0 comments | 2 tweets | 7 linkedin
EBay rebuffs calls to spin-off PayPal

EBay rebuffs calls to spin-off PayPal

23 January 2014  |  3346 views  |  0 comments | 3 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextraFind out moreVisit VocaLink.com

Top topics

Most viewed Most shared
China tops world fintech rankingsChina tops world fintech rankings
8313 views comments | 38 tweets | 31 linkedin
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
7936 views 12 comments | 15 tweets | 27 linkedin
EBA bends under weight of PSD2 mandatesEBA bends under weight of PSD2 mandates
7923 views comments | 36 tweets | 47 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6749 views comments | 20 tweets | 23 linkedin
PSD2 will transform the payments landscapePSD2 will transform the payments landscape
6716 views comments | 23 tweets | 13 linkedin

Featured job

Find your next job