Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Jan 22 2014 16:46:06

Should eBay Spin Off PayPal?

By: Ina Steiner

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Carl Icahn wants eBay to spinoff PayPal into a separate company. The idea has been batted around before now, but thanks to Icahn's new proposal, eBay now has to deal with it publicly. (You can read what eBay had to say thusfar about the Icahn proposal in the fourth quarter earnings release.)

In fact, eBay said today it has explored in depth a spinoff or separation of PayPal, but the Board of Directors does not believe breaking up the company is the best way to maximize shareholder value.

"As part of eBay Inc., PayPal is able to leverage the company's technology capabilities, commerce platforms and relationships with retailers, brands and large merchants worldwide. Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders."

But more interesting is what a separation would mean for online sellers (and buyers). Would PayPal continue to benefit from eBay's requirements around the use of PayPal on its marketplace? Would disputes be more difficult to resolve, or would the process become more transparent?

What would be the impact on your business if PayPal was spun off of eBay?

eBay spokesperson Ryan Moore said eBay CEO John Donahoe will talk about the board's take on Carl's proposal during the conference call coming up this afternoon - we'll be tuning in to learn more.

Here's a piece of a slide from the eBay earnings slideshow coming up shortly.


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Perminate Link for Should eBay Spin Off PayPal?   Should eBay Spin Off PayPal?

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

Fri Jan 24 14:27:19 2014

@Ric, The Ho was effectively in control of eBay in August 2007 (well before he was formally appointed Chief Headless Turkey in March 2008), when eBay’s and Amazon’s stock were both ~$40/share; from that point the increases equate to only 35% for eBay and 900% for Amazon.

It seems that even Icahn is having trouble with his math, just like Johnny Ho …

What I want know is, how has this headless turkey has managed to constantly avoid the Thanksgiving diner table?

Perminate Link for Should eBay Spin Off PayPal?   Should eBay Spin Off PayPal?

This user has validated their user name. by: Puck

Fri Jan 24 14:48:48 2014

"Carl Icahn: If eBay wants a proxy war I'll give 'em one"

"I think PayPal might be acquired and that would make it even better for shareholders," Icahn told The Wall Street Journal. "And it's a shame to have it held back by eBay and that I think is what's happening."

This should be interesting...

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by: Patricia This user has validated their user name.

Sat Jan 25 11:55:42 2014

I'd love to see paypal spin off from Ebay.  I don't deal with Ebay anymore....my website has a paypal shopping cart and the three other venues I sell on also deal with Paypal.  I've never had a bit of trouble with them...never had them hold my money either in over 15 years!  Ebay is just a major management screw up and the less Paypal has to do with them the better.  Icahn usually gets what he aims at.  A take over of Ebay could be in the works.  Whatever...I'll watch with great amusement.

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by: Digmen1 This user has validated their user name.

Sat Jan 25 17:35:25 2014

Yes,

I have been saying it for years.
They are seperate areas of business and both should stand alone.


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

Sun Jan 26 12:03:35 2014

It pains me terribly, but …

Notwithstanding that I have hereto before been a constant critic of eBay’s chief headless turkey, Johnny Ho, I concur with him that eBay should never let “PreyPal” go. As big a fool as he is, Johnny Ho knows that without its existing integrated relationship with the eBay marketplace, the value of the clunky “PreyPal”, as a stand-alone, would be reduced catastrophically; and, worse still, without “PreyPal”, the value of the eBay marketplace would be reduced by ~40%; regardless, the marketplace would continue on its journey down the toilet—but at an even faster rate …

I hate to admit it, but Johnny Ho has got it right this time; Icahn does not know what he is talking about and clearly has no understanding of the inextricable and mutually supporting nature of the incestuous relationship between these two clunky, disingenuous, unscrupulous, commercial entities …

Regardless, none of the above outweighs the fact that Johnny Ho is otherwise a destructive, narcissistic sociopath and that under his direction eBay Inc is going to ultimately finish up at the sewage farm …

eBay / PayPal / Donahoe: Dead Men Walking ... http://bit.ly/11F2eas

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by: ebay refugee camp This user has validated their user name.

Sun Jan 26 13:40:19 2014

I believe ebay would start a new payment processor if they spin off paypal, that is the only way Donahoe, Swan and the rest of the greedy bonus hungry wall streeters could keep their jobs.
As it stands now acquisitions and Paypal are masking the pitiful job done with ebay, they have chased away many honest businesses due to their gestapo deceptive rule.
Ebay has barely kept up with natural progression of people shopping online, that is a fact. Donahoe's failed buyer protection, the FVF on shipping costs, failed TRS system, payment holds even though the seller has a delivery confirmation, removal of sellers being able to leave negatives, enrolling sellers deceptively into global shipping and managed returns, constantly changing search, all of this is sinking ebay.
This disruptive and deceptive crap is clearly the wrong way to go and it seems like the rest of the business world are starting to notice this.
Ebay is out of control, so dishonest, how can any executive at this company say they are honest, my gosh they are actually tricking sellers by enrolling them in the global shipping program when they are forced to agree to the user agreement and you cannot opt back out for 24 hours, ebay is hard up I guess they are hoping they will get a international sale in those 24 hours that they get FVF on, just plain deceptive and dishonest.
It is so sad that these ultra wealthy individuals have to do this, the greed that they are consumed by allowing them to believe it is okay to do this, it is just sickening that judges, politicians and government officials are clearly being paid off to turn the other cheek

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

Sun Jan 26 13:56:21 2014

It is estimated that half of PayPal's profits come from eBay transactions and “PreyPal” currently contributes ~42% of eBay’s profits. You can bet that if “PreyPal” was ever sold off to the mug punters, Johnny Ho would immediately, and logically, start up a payments clone to at least keep that eBay-sourced income for eBay ...

Regardless, when such greedy, unscrupulous executives ultimately find themselves swimming against a strong current flushing them towards the sewage farm, they have to use every trick that they can find in their well-used Bain toolbox …

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by: Bloggo This user has validated their user name.

Sun Jan 26 14:08:33 2014

"Ebay has barely kept up with natural progression of people shopping online, that is a fact."
Truer words were never spoken.

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

Sun Jan 26 14:35:55 2014

“N.J. man indicted for bogus eBay buys”

http://www.philly.com/philly/news/breaking/NJ_man_indicted_for_bog
us_eBay_buys.html?&c=n


And just how many charge-backs can such a fraudster make before his account is flagged by the clunky “PreyPal”?

I’ll bet that probably all of this fraudsters payments were made via “PreyPal”. The utterly unscrupulous and clunky “PreyPal” will not offer a defense to such charge-backs because the cost of employing the human resources to do so would eat into their profits too greatly …

Regardless, eBay is an equal opportunity fraudster; they will knowingly facilitate the defrauding of both buyers and sellers ...

The ugly reality of eBay Inc.:
eBay's crooked auctions marketplace ... http://bit.ly/11F2eas
eBay Motors (UK sampling): Auction Fraud Galore ... http://bit.ly/I2gTEU
eBay's clunky, unscrupulous "PreyPal" ... http://bit.ly/UVXx53
The ongoing joke of eBay Inc. ... http://bit.ly/YvxFEg
Fun quotes from the eBay executive suite ... http://bit.ly/12xvzyA

Perminate Link for Should eBay Spin Off PayPal?   Should eBay Spin Off PayPal?

by: wallflower This user has validated their user name.

Mon Jan 27 11:46:36 2014

I am not knowledgable about corporate financial affairs. I am just happy that a public figure dissed Donahoe!

Perminate Link for Should eBay Spin Off PayPal?   Should eBay Spin Off PayPal?

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

Fri May 2 16:45:42 2014

UGLY new preypal logo.... I hope that its got a 6-month guaranty!

http://www.ecommercebytes.com/cab/abn/y14/m05/i01/s02

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