Categories
Close
Menu
Menu
Close
Search
Search

Featured Articles

[EasyDNNnews:IfNotExists:Image]
News

eBay to split PayPal into a separate business

[EasyDNNnews:EndIf:Image]
Mark

Share:

Print

Rate article:

No rating
Rate this article:
No rating

eBay has announced plans to separate its PayPal e-commerce operation from its online auction and shopping business. PayPal was created around 15 years ago and launched on the stock market in 2002. It was acquired by eBay later that year.

In a recently-completed review, the board of eBay said separation would create a sharper strategic focus and would better position each business to capitalise on the growth opportunities offered by a changing competitive landscape. In addition, it noted that the benefits of the current relationship between eBay and PayPal would decline over time.

Image

John Donahoe, CEO and President of eBay Inc, said “eBay and PayPal are two great businesses with leading global positions in commerce and payments. For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value. However, a thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively. The industry landscape is changing, and each business faces different competitive opportunities and challenges. eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets.”

The split is expected to take place in the second half of next year. Afterwards, Devin Wenig, the current president of eBay Marketplaces, will become CEO of the new eBay company.

Meanwhile, Dan Schulman - who’d previously worked at American Express - has been appointed as the new President of PayPal. He’ll also become CEO of PayPal when it separates from eBay.

PayPal currently has more than 152 million active registered accounts. It processed $27 billion (around £18 billion) in mobile payments last year and expects to handle 1 billion mobile transactions in 2014. The eBay mobile app is installed on 200 million devices, generating $20 billion of transactions last year.

Comments

Collapse Expand Comments (0)
You don't have permission to post comments.

Opinion Articles

ExclusiveThis week at The Fonecast: 23rd July 2011

Mark Bridge writes:

We've had a week packed with financial figures. Microsoft, Vodafone and Qualcomm were all relatively upbeat with their quarterly results. A 'thrilled' Apple shipped over 20 million iPhones in yet another record quarter, while Nokia shipped less than 17 million smartphones (and almost 72 million other mobile phones) in its 'disappointing' quarter.

ExclusiveThe fight against mobile bullying gets smarter with Bully Block

Mark Bridge writes:

With mobile phones becoming smarter – and increasing numbers of children using these smartphones – it's not surprising to hear that bullies are taking advantage of mobile technology. 'Cyber-bullying' is now in the Oxford English Dictionary... and some people have even called for a ban on mobiles in schools in an attempt to reduce bullying.

Taking a high-tech perspective in the fight against mobile bullying is Sedgrid Lewis, CEO of Spy Parent LLC.

ExclusiveNever mind iPhone 5, it's the Apple iPad 3 that could change the world

Mark Bridge writes:

I like a bit of competition. It can encourage innovation, whether it's NASA's moon landings or Formula 1's telemetry. And it can be entertaining to watch, from Premiership football to the Tour de France.

It's one of the reasons the mobile industry still excites me. Although the frenzied growth of the 1990s is gone, there are still many competing forces.

ExclusiveThis week at The Fonecast: 17th July 2011

Mark Bridge writes:

Much like the mainstream media, this week's news summary begins with 'voicemail hacking'. In our podcast feature on Friday we spoke to industry crime-fighter Jack Wraith about the security of voice messages. He explained how remote voicemail access was now much more secure than it was ten years ago, which is good news for everyone (except dodgy investigators).

RSS
First6566676870727374Last

Recent Podcasts

ExclusivePodcast from Mobile World Congress 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

ExclusiveLooking back at February: from security scares to multiple MVNOs

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

ExclusiveA month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

RSS
12345678910Last

Follow thefonecast.com

Archive Calendar

«July 2026»
MonTueWedThuFriSatSun
293012345
6789101112
13141516171819
20212223242526
272829303112
3456789

Archive