Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Oct 1 2014 22:41:15

Speculation that eBay CEO Fumble Led to PayPal Breakup

By: Ina Steiner

Sponsored Link

A fumble by eBay CEO John Donahoe may be the cause of the eBay-PayPal breakup, according to speculation reported in Geekwire, which was citing a report in Bank Innovation:

"According to the publication, sources close to PayPal and Apple says that PayPal was going to be one of the "preferred payment" processors for Apple Pay. But then, PayPal partnered with Samsung on the Galaxy S5 fingerprint scanner,..."

Geekwire said PayPal's deal with Samsung was "supposedly forced on to PayPal by eBay's CEO John Donahoe," and it noted that David Marcus left shortly thereafter (for a VP position at Facebook). Note that eBay also recently lost its CTO Mark Carges, who left to focus on a family matter.

There's been lots of talk since eBay's big announcement Tuesday that Apple's new payment service Apple Pay - and Apple's decision to give PayPal the cold shoulder - could have prompted the eBay board to determine it was necessary to split the companies.

We've sent a link to the story to eBay for comment. Read the full story on Geekwire and let us know if you think there could be any basis to this rumor.




Comments (62) | Leave Comment | Permalink

Readers Comments

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: Mr. Me This user has validated their user name.

Wed Oct 1 23:16:07 2014

HARI-KIRI , the only honorable way to exit, sayonara J.D. !

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: Map

Wed Oct 1 23:27:21 2014

Good listening music while you read,

https://www.youtube.com/watch?v=ZnHmskwqCCQ

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: Xander This user has validated their user name.

Wed Oct 1 23:47:30 2014

Such a surprise, John Donahoe blundered?

Oh, the damage done.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: CNYC This user has validated their user name.

Wed Oct 1 23:54:40 2014

I believe it, Donohoe was the worst thing that ever happened to Ebay so far.  But, his successor may be even more of an asshat.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: Xander This user has validated their user name.

Thu Oct 2 00:15:11 2014

The Devil will need to be at his best behavior, at least in the beginning.

Lets see what he starts off with, if it isn't genuine, he will fall quickly.

At this point, there are not too many ebay users who could afford to tolerate more of JD's type of ebay.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: Ric

Thu Oct 2 00:31:02 2014

John Donahoe has been faking it as CEO since assuming the role.

His three year turn around plan, now in year seven going on eight failed buyers, sellers, investors and eBay miserably.

Arrogance alone is not a leadership quality that inspires the public, so with that being all Donahoe had in his bag of tricks it was blatantly obvious he was going to fail, the only question has been when.

You do not take on an investor who has over 30.8 million shares of stock, call his bluff, and survive when quarter after quarter, earnings reports show that you can not grow sales as you promised.

The fact that Donahoe is going to sit on the boards for both companies after the separation means little.

More troubling is the fact that Donahoe hand picked his successor.

Remember, when she was leaving, Meg Whitman hand picked the monkey to drive the eBay train and we got Donahoe, I have no doubts that Mr Wenig is cut from the same cloth as Donahoe.  If Mr Wenig was not a Donahoe clone, JD would never have selected him.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: brokentoys19 This user has validated their user name.

Thu Oct 2 01:05:25 2014

So basically, Donahoe got caught trying to double-cross applepay, then apple kicked ebay out the door? Literally!? [from the bankinnovation.net write up if you follow the links through]) Obviously nixing the entire deal too.

A blunder of monumental proportions. $Billions and more lost! hahahahaha !!!

Not to mention more-less setting into motion an executive exodus?

Great work, Donahoe.

"When the tree falls, the monkeys will scatter"

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: bitbybit

Thu Oct 2 02:29:56 2014

So Donahoe went with the fingerprint scanner and Apple gave him the finger.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: Massachusets Howler This user has validated their user name.

Thu Oct 2 02:54:19 2014

This appears to be confirmed!

To think- APPLE WAS WILLING and ebay/PP F%^Ked it up is MONUMENTAL.
MH
(Keystone Cops)

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: eBankrupted

Thu Oct 2 03:34:18 2014

So if someone cuts off my finger, and unlocks my Android, they can drain my PayPal account?

Can you see now why the BoD put crazy uncle Ho in the corner?

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: sasikat9 This user has validated their user name.

Thu Oct 2 06:29:42 2014

Hopefully when the donut leaves the door slams him hard on the way out.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: Rexford

Thu Oct 2 06:32:27 2014

What I would like to know is why did it take the eBay Board so long to figure out what eBay sellers knew shortly after he took the reins? We said early on that he would muck it up and fail and that is exactly what happened.  In my opinion he is a true empty suit.

Mr. Weinig, if you are reading this, you can learn a lot from your customers.  Now is the time that you can make a difference.    If you don't start listening to "the voice of the customer" you will suffer the same fate.

You need to extend an olive branch to small sellers (the "noise" will NOT go away) and you need to establish a level playing field and stop throwing great sellers under the bus.

For every action there is an equal and opposite reaction---do you really need this type of publicity?  Can you imagine the great publicity the company would get if it actually endeared itself to small sellers once again?

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: LDS Brother

Thu Oct 2 06:53:07 2014

RIC said: "I have no doubts that Mr Wenig is cut from the same cloth as Donahoe.  If Mr Wenig was not a Donahoe clone, JD would never have selected him."

I agree 100% is all about PAIN for the small seller, and hatred of the small seller, so Ric is right !

In my opinion I to have no doubt, now that I really think about it, that Donahoe would pick a man who met the requirements to Donahoe's satisfaction to CONTINUE the abuse and cruelty to small sellers, and possibly even hate us even more !

Donahoe has to give us his GRANDEST final F*#K YOU to us sellers, and it makes sense to me that it will be Devin Wenig

Donahoe would NEVER pick a guy to undo, or lighten up the damage he caused

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: Philip Cohen
Web Site

Thu Oct 2 06:57:16 2014

This story has to be nonsense. Certainly, it is nonsensical. Love or hate Apple, I don’t believe that Apple could possibly have ever been so foolish as to have seriously considered getting into bed with eBay’s clunky “PreyPal” …

Sensible people keep their funds in a prudentially regulated, FDIC-insured, retail bank accounts; MasterCard and Visa act as intermediaries in offering consumers a system to easily access those funds remotely; PayPal is another intermediary that early on recognised a need for a simpler system to access funds for online purchases, and they then climbed onto the back of the credit card companies; now, along comes Apple Pay to supposedly better serve consumers at mobile and physical point of sale, and they too want to ride on the backs of the credit card companies.

The fact is, “PreyPal” never had anything to offer Apple; “PreyPal” is just another intermediary, like Apple; indeed, Apple could just as easily do what “PreyPal” does on its own behalf; any partnering with “PreyPal” would only result in Apple riding on the back of “PreyPal” who in turn is riding on the back of the existing systems of the banks/MasterCard/Visa; an absurd proposition, particularly given that “PreyPal” prefers to use the risky non-interactive ACH direct debit on banking accounts to maximise their income.

PayPal’s material problem has always been ensuring that the buyer has the funds, plus their arbitrary transaction dispute mediation; does anyone really think that Apple would want to get involved with that mess, particularly for physical POS transactions where the goods are going to immediately walk out the door?—sorry, it’s just too silly to ever contemplate as having had any basis in fact …

Frankly, I don’t see any great future for either Apple Pay or “PreyPal” now that both MasterCard and Visa have launched their own professional online/mobile wallet app offerings—“MasterPass” and “Visa Checkout” …

Nevertheless, the launch of Apple Pay was the greatest media/marketing beat up yet that we have been treated to in the 21st century! The Apple fanboys and shills are ecstatic! Too bad all that hot air will soon enough cool …

And “PreyPal”—all too soon to be made redundant; now, if Johnny Ho ever had any brain he might have long ago had a chance to negotiate a partnership for PayPal with MasterCard or Visa—but it’s too late now for both “PreyPal” and the Ho, and probably for the eBay Marketplace …

Well done, Johnny Ho, Ho, Ho; that Bain workbook stood you in good stead …

Retail Payments (and Apple Pay/PayPal)—The Reality ... http://bit.ly/1nSA1Zl

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: maxmad This user has validated their user name.

Thu Oct 2 07:15:26 2014


IMO No one could be that stupid, these decisions are being made for personal gains, there are some under the table deals that were made, and more to be made that's for sure.  

ebay is done for, nothing will turn it around, the damage done to the customer base is extreme, and now without paypal profits, there is no way on earth this company will survive, after it is looted for everything of value, it will eventually be sold for scrap.



Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: tradernick This user has validated their user name.
Web Site

Thu Oct 2 07:17:06 2014

I exchanged emails with Devin Wenig a few years ago, complaining about lack of buyer protection. He was very gracious and professional and listened to my message, then turned me over to Gene Cook via email, who was also very nice and seemed to care, who then turned me over to Rich Matsurra, who I actually spoke with on the phone for a long time and exchanged several emails. All of these guys were nice and painted a rosy picture of what they wanted for seller protection but nothing ever came of it. Zero. Nada. Zilch. It was all a waste of time and grey matter. They all talked a good game but ultimately ebay did the opposite of what they said they would do...as usual. I'd like to think things will be different with Mr. Wenig at the helm but I honestly doubt it. CEO of a large company is undoubtedly a difficult job...I certainly wouldn't want it...but as long as ebay allows buyers to steal from sellers and continues to ignore the HUGE lack of real seller protection I don't expect any real change to happen. Meanwhile the ebay alternatives are gaining more traction every day.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: Moonwishes This user has validated their user name.
Web Site

Thu Oct 2 08:02:41 2014

>>Sensible people keep their funds in a prudentially regulated, FDIC-insured, retail bank accounts; MasterCard and Visa act as intermediaries in offering consumers a system to easily access those funds remotely;<<

Back in the 'good ole days' I never had a problem letting my PP account go up to $100 before transferring the money (I am a small seller). At this point from about $20 on up the money gets transferred ASAP as it makes me nervous that it could disappear in an instant or get locked for some stupid reason. I think my thinking changed on this around the time JD got the power, and the reports of problems with PP were surfacing regularly. While I haven't had a problem myself with PP, I still don't trust it or ebay.

I don't understand big economics like big companies splitting, but I do understand that when my sales plummeted and the rules became oppressive, I didn't have to stick around. I wasn't an Egyptian slave building a pyramid for a Pharoah. I had the ability to pick up and leave.  

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: WhoKnewIt This user has validated their user name.

Thu Oct 2 08:49:43 2014

@Moonwishes, well said.  I no longer deal with PP since they increased the return time to 180 days.  But, even before that I transferred money out of PP the second it landed there.  They locked my account once due to a "buyer complaint raised from not receiving the item".  I couldn't understand that since the buyer not only received the item but ordered another one while PP was sitting on my money for weeks.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

by: pace306 This user has validated their user name.

Thu Oct 2 08:56:12 2014

I dont know whether its true or not - but it wouldnt suprise me since JD jas never made a good decision since day 1.

But you cant blame him entirely - blame eBays BOD who KNEW JD had NO ecommerce or retail experience BEFORE they hired him.

Icahn said he as a fool, and JDs performance on the financial talk shows bears this out.

Regardless of what actually happened - this entire split is akin to removing the lifeboats from the Titanic - "it aint gonna end well".

NO sane individual is going to use Paypal to buy their groceries, buy their Wendys, McDonalds or Applebees - they will simply Applepay NFC it - all while being "cool".

No ones going to stop to log into Paypal while all the friends watch - and transfer money to ronald@mcdonalds.com ... absolutely REDICULOUS.

eBay? Sales are slower then molasses running uphill during the winter - and with so many angry sellers - alot who are leaving (you know - voting with their pocketbooks) ... eBay BETTER get scared. That smartphone advert is nonsense.

This whole thing is s stock swindle, with JD, Wenig, Burke and Icahn making money on the stock's moving up n down a few points at a time - all the while leaving us - the few sellers left - the ones who have to be here - high n dry with the same old policies that got eBay into hot water before.

Perminate Link for Speculation that eBay CEO Fumble Led to PayPal Breakup   Speculation that eBay CEO Fumble Led to PayPal Breakup

This user has validated their user name. by: iheartjacksparrow

Thu Oct 2 09:21:57 2014

I agree with Pace. When has JD ever made a good decision? All those thinking days gone to waste.  

Click to view more comments
1 2 3 4  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.