eBay and PayPal to split in 2015

Despite arguing the exact opposite earlier this year, eBay has announced it plans to separate eBay and PayPal into two independent business units in the second half of 2015.

According to a press release from the Bay Inc board of directors, the company will split PayPal away from the auction site. This restructuring means eBay's current CEO, John Donahoe, and CFO, Bob Swan, will step down from their roles - but will take board positions "to provide continuity". 

Dan Schulman, currently at American Express, will become CEO of the new PayPal in 2015, while Devin Wenig, currently president of eBay Marketplaces, will become CEO of the new eBay company. 

"As both a leading global technology platform and a financial services business, PayPal requires a diverse blend of leadership skills and operating experience in its president and future CEO,” the current CEO, Donahoe, said.

"Dan has a proven track record of leading complex technology businesses at scale, driving sustainable growth and understanding how to innovate to drive competitive advantage and deliver compelling experiences for customers. I am thrilled to have him lead PayPal forward as a publicly traded, independent global payments leader, and we welcome him to the team."

The company stated yesterday creating the two standalone businesses best positions both to capitalise on their respective growth opportunities.

Despite mutually benefitting from being part of one company, the partnership "clearly becomes less advantageous to each business strategically and competitively" beyond 2015.

"eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets," Donahoe added.

"Together, eBay and PayPal have delivered substantial value creation for our shareholders. We believe eBay and PayPal will continue to do so as separate, independent companies. Tremendous opportunities exist for each business."

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