EBay To Separate PayPal And EBay Into Two Public Companies

EBay Inc. said Tuesday it is separating its eBay and PayPal businesses into two independent, publicly traded companies, in a transaction expected to be completed in the second half of 2015. "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," eBay President and CEO John Donahoe said in a statement. EBay said Devin Wenig, who is currently president of eBay Marketplaces, will be CEO of the new eBay. Dan Schulman, who is currently president of the enterprise growth division at American Express, will be CEO of the new PayPal. Earlier this year, activist investor Carl Icahn pushed for eBay to spin of 20% of PayPal in a public stock offering, but dropped a planned proxy fight in April after eBay agreed to bring Icahn ally and CVS Caremark Corp. Chairman David Dorman onto its board. On Tuesday, EBay shares were not yet active in premarket trade, but are down 4% in the year so far, while the S&P 500 has gained 7%.