Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Sept 30 2014 06:53:04

eBay and PayPal to Split, John Donahoe Will Remain on Boards

By: Ina Steiner

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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




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Readers Comments

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

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

Tue Sep 30 07:12:24 2014

We knew something was up.
MH

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Basset

Tue Sep 30 07:15:43 2014

Hmmm.... and so IT begins.

Can't exactly call it unexpected.  

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Al G

Tue Sep 30 07:26:38 2014

Hang on! Nothing like a major change at the top to demoralize a company.

The middle managers now have to "make their bones" over again. The blokes in the trenches will take it on the chin.

Oh yes, how does this affect eBay's "policy/crisis of the day'?

The only good thing coming out of this is no more "Thinking Days" and maybe business meetings will be held without cell phone distractions.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Basset

Tue Sep 30 07:38:41 2014

Is there any ''sunshine'' or transparency involved in a split like this?  

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

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

Tue Sep 30 07:52:05 2014

And Donahoe remains???  Yeah, whatever....

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

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

Tue Sep 30 08:07:08 2014

I am CONFUSED ?

Devil Wenig is the next CEO next year ?

Can someone help me understand what Devil Wenig will be CEO of NEW eBay company means ?

IS he the next CEO and if so will he try to TOP Donahoe in inflicting pain on good sellers ?

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Ed Gadfly

Tue Sep 30 08:09:46 2014

Now that is ambition! JD has 2 jobs. This truly is a Land Of Oppertunity, and it's companies like eBay and PayPal who make you sellers a success.

JD does a great job because when we (me and the mouse in my pocket) talk, those companies listen.

Forget your germy dollars and your cryptic little Bitcoins. PayPal is the most loved form of payment.

They say so, you read it, it must be true.

When is the next eBay On Probation, event? I can't wait to stick my head in the Kool-aid.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Rexford

Tue Sep 30 08:21:31 2014

And Carl Icahn is $180M richer this morning.

What I am hoping for is that going forward that eBay will not be able to hide from their true numbers---no more hiding behind PayPal's accounting skirts.

And Donahoe is like a party guest who doesn't know when it's time to leave.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: SleepyTime This user has validated their user name.

Tue Sep 30 08:34:13 2014

DONAHOE IS GONE!!!!!  Be still my heart.  I don't know why after almost 6 years away from Ebay that excites me so much.  What a long, terrible reign of a CEO.  I applaud all of the sellers that have hung in there and I REALLY hope that things now get better for you.  DONAHOE IS GONE!!!!!

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: LightWing This user has validated their user name.

Tue Sep 30 08:37:19 2014

With "11 Main" opening in the next few months and the Alibaba IPO success I expect "someone in China" to actually buy Ebay next year.

As an 11 Main Seller, last week we were asked to join their "Direct Payments" program...they're pushing Paypal to the side.

The best way to kill a Snake is to cut the head off.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: frustrated This user has validated their user name.

Tue Sep 30 08:44:23 2014

Remember how happy we were when MEG stepped down?

This Wenig could be a great thing and could be 1,000 times worse than Donahoe.

Don't count your chickens before they hatch.

Remember Donahoe likely hand picked this guy because he shares his values. i.e, we hate small sellers, let's get rid of them??  

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: frustrated This user has validated their user name.

Tue Sep 30 08:50:01 2014

Wenig: NO E-COMMERCE experience.

What does that tell ya?

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: DingDong This user has validated their user name.

Tue Sep 30 08:58:35 2014

Is this a way to sell the "broken eBay"? Is this a way that Paypal can charge a monthly fee for use?

Any selling sites, please start adding Direct Checkout for your sellers and if possible Stripe, Propay or whatever other option of payment that people can use other than Paypal.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: LightWing This user has validated their user name.

Tue Sep 30 09:16:34 2014

Here's a question:  Will the new "agreements" between Ebay and Paypal REMOVE the forced acceptance of Paypal for Ebay transactions?  My guess is no.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Map

Tue Sep 30 09:21:14 2014

Way to go CARL. HAHAHAHAHAHAH

Jim Cramer has the Quote of the day.
"I'm not touching eBay Stock"

HAHAHAHAHAHAHAHHAHAHA

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: frustrated This user has validated their user name.

Tue Sep 30 09:22:34 2014

WATCH the Alipay.

Don't be so quick to jump on THAT bandwagon. They HOLD ALL PAYMENTS until the item is delivered. Which could be a big part of the reason Jack Ma is a billionaire.

Read that fine print before you sign up.

And SQUARE is getting bigger and bigger as a payment processor. We keep hoping they will start online interface soon.

Pay-pal is telling us we may have to issue refunds for 6 months after the sale. HE**, I COULD BE DEAD BY THEN.

Totally un-realistic.  

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Basset

Tue Sep 30 09:58:02 2014

Donahoe may be gone but he's not GONE since he's still on the board.

And, isn't Wenig just more of the same ole same ole?

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

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

Tue Sep 30 10:01:10 2014

Will there be any immediate changes to the defect system now?
MH

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

This user has validated their user name. by: Rexford

Tue Sep 30 10:02:21 2014

Basset, correct on both accounts.  Unless Donahoe was twisting Weinig's arm I would not expect much to change.

MAP, Jim Cramer has waffled over eBay for years. One minute he is singing their tune and the next minute he is not.  I put no faith in the man who stated that everything at Bear Stearns was just fine.

Perminate Link for eBay and PayPal to Split, John Donahoe Will Remain on Boards   eBay and PayPal to Split, John Donahoe Will Remain on Boards

by: ebayisscrewed This user has validated their user name.

Tue Sep 30 10:10:53 2014

"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."

They are SO delusional.  Seriously, who believes eBay to be an innovator?  Not one of your brilliant innovations has worked and has successfully driven the marketplace into the ground.  

Trust?  I am in such disbelief that they think they are trusted that I can not even get my brain to comment on this.  

Selection?  You mean we (ebay) force feed the masses what we want them to see and buy regardless of what they are really looking for.  Great Selection!

Global Reach?  Bwhahahahahaha.   Our Global Sales have all but died as eBay's greed introduced the global shipping program.  A program that erroneously charges ridiculously high taxes to international customers while pocketing the change.  Seriously, when is our government going to audit the excess revenue from this program?  

They run the core marketplace into the ground.  They destroy a once vibrant community.  Here's your golden parachute @##holes.  

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