There has been a recent trend in the Tech Industry as large Tech Firms are moving to splitting up and eBay and PayPal are not left out of this as will become separate companies in 2015.
eBay purchased PayPal in 2002 for $1.5 billion, and the service is the preferred method of payment on eBay. Since then, they has been a tie between the two until this year.
"eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets," eBay President and CEO John Donahoe said in a statement.
The Board at eBay has recently concluded that eBay and PayPal can better pursue new markets and partnerships as a single entity but the Big Question is, will this lead to an acquisition, and if so, who's the buyer? Google? Apple? or Facebook?
We just hope PayPal will win the battle against Apple Pay, which is scheduled to arrive this month. eBay, has recently revolutionised their online auction site that functioned much like a digital garage sale to an e-commerce site with reaching more sufisticated clients in prospects, expected to be completed in the second half of 2015.
Devin Wenig, currently president of eBay Marketplaces, will take over as CEO of the new eBay. Scott Schenkel, CFO of eBay Marketplaces, will become CFO of eBay. Former American Express Executive, Dan Schulman, will become PayPal President and CEO when the deal closes. At this point, there's no plan by eBay to change it's payment method from Paypal.
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