SELLING AND PAYING COMPANIES eBay and Paypal will split up and become two independent firms.
The companies said that they will separate in 2015, and that their mutual parting is amicable and intended to increase value and please shareholders.
The two seem intrinsically linked, and they have been for some time. When you buy something on eBay, you pay for it using Paypal. It is not a system that everyone likes, but people have come to accept it.
The breakup presumably will not affect people selling goods through the auction website, or eBay's general performance, but the firms apparently believe it will improve their bottom lines.
"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," said eBay CEO and president John Donahoe.
"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."
Donahoe said that both the firms will be leaner and stronger, and "more focused and competitive". He then started talking about synergies and we started looking out the window and thinking of simpler times.
"As independent companies, eBay and Paypal will enjoy added flexibility to pursue new market and partnership opportunities. And we are confident following a thorough assessment of the relationships between eBay and PayPal that operating agreements can maintain synergies going forward," he added.
"Our board and management team believe that putting eBay and Paypal on independent paths in 2015 is best for each business and will create additional value for our shareholders."
Devin Wenig, who is head of eBay Marketplaces, will lead the new eBay, and Dan Schulman will join the outfits from American Express to become the president of Paypal. µ
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