|Tue Sept 30 2014 06:53:04|
eBay and PayPal to Split, John Donahoe Will Remain on Boards
By: Ina Steiner
eBay and PayPal will split into independent publicly-traded companies in 2015, the company announced on Tuesday. The company's management had always discussed the possibility, but this year, activist investor Carl Icahn put pressure on the company to spin off PayPal.
- eBay Inc. President and CEO John Donahoe and CFO Bob Swan will oversee separation and serve on boards of new independent companies.
- Devin Wenig, president of eBay Marketplaces, will become CEO of new eBay company following separation.
- Dan Schulman is joining the company as the new President of PayPal, effective immediately. Schulman will become Chief Executive Officer of PayPal after the separation.
Here's what eBay told users on its announcement board:
Today, eBay Inc. announced it will create two independent public companies—eBay and PayPal—in the second half of 2015. This will ensure each business is best able to serve its customers’ needs and thrive well into the future. You can read more about it here at ebayinc.com.
The creation of independent eBay and PayPal businesses will take up to 12 months to complete so this has no immediate impact on your account. Likewise, you can continue to count on everything you expect from eBay today. Innovation, value, trust, selection, and global reach will remain central to our business. And we will continue to work closely with PayPal to ensure payments remain a seamless part of the eBay experience.
As an active customer, you help make eBay what it is. eBay has always been more than a store. It is a community of people—buyers and sellers—connecting around the world. Thank you for being part of this amazing community. As we begin this next chapter of the eBay story, you have our commitment to make sure people like you remain at the heart of everything we do.
We are excited by the opportunity ahead and look forward to working with you in the future.
eBay Inc. will host a conference call on Tuesday September 30, 2014 at 5am Pacific Time / 8am Eastern Time to discuss the announcement. For the webcast, go to http://investor.ebayinc.com