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mtn security

eBay, PayPal to split by 2015

Kayode OladeindebyKayode Oladeinde
03/10/2014
in Tech News
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eBay Inc, a global commerce and payments and PayPal, a global leader in digital payments will with effect from the second half of 2015 split into two independent publicly traded companies.

The companies said that the decision, which is subject to market, regulatory and certain other conditions is the outcome of the board of director’s strategic review of the company’s growth strategies and structure.

Each of the hitherto fused companies will capitalise on their respective growth opportunities global commerce and payments space.

“eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay Inc. President and CEO John Donahoe. “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.

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

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Kayode Oladeinde

Kayode Oladeinde

Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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