|
EBay Chief Executive John Donahoe had resisted
demands by activist investor Carl Icahn to hive off the service,
saying PayPal was integral to eBay's business - and vice versa.
Icahn backed off from his demand in April.
"A thorough strategic review with our board shows that keeping
eBay and PayPal together beyond 2015 clearly becomes less
advantageous to each business strategically and competitively,"
Donahoe said in a statement on Tuesday.
After the tax-free spinoff to shareholders, the new eBay will be
headed by Devin Wenig, president of eBay Marketplaces and former
head of the Markets division of Thomson Reuters Corp <TRI.TO>.
American Express Co <AXP.N> executive Dan Schulman joins PayPal
immediately as president and CEO of PayPal after the spinoff,
the company said.
Donahoe and Chief Financial Officer Bob Swan will oversee the
separation and serve on the boards of both companies.
PayPal was founded in the late 1990s and went public in 2002. It
was acquired by eBay soon afterward for $1.5 billion.
PayPal had 143 million active users at the end of 2013, up 16
percent from a year earlier.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Savio
D'Souza)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
