eBay CEO Shocked at Departure of PayPal President

eBay Inc. CEO John Donahoe sent a note to PayPal employees on Wednesday informing them that PayPal President Scott Thompson was leaving to become Yahoo's new CEO, effective immediately. "Scott informed me Tuesday afternoon, saying that despite his passion for PayPal, this was an opportunity he felt he had to take. I know I speak for everyone in wishing Scott the best."

Donahoe said that he was shocked by Thompson's decision - last year, Donahoe told analysts that PayPal would become bigger than eBay as early as 2 years from now.

Donahoe met with PayPal's leadership team on Wednesday to "plan a seamless transition" and will serve as PayPal's interim president.

In his note to employees, he said PayPal had an enormous opportunity in front of it and would not slow down. "We will not miss a beat. And we will continue driving the incredible momentum that each of you has helped to create."

Here's an interview with Scott Thompson from 2008, not long after he was named President of PayPal, where he talks about the competitive landscape in online payments, including touching on Google, and PayPal's focus in the next 12 - 24 months.

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