Paypal bids for a life away from eBay
It will now trade as a separate publicly traded company, and will no longer be completely associated with eBay - the breakaway is scheduled to occur sometime during 2015.
Pre-market shares in eBay surged by 11% on news of the announcement on Tuesday.
eBay said a decision had been made to separate as a strategic move to help maximise growth and shareholder value for both the payment and retail entities.
“eBay and PayPal are two great businesses with leading global positions in commerce and payments,” eBay president and CEO John Donahoe said.
“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.”
This comes several months after investor activist Carl Icahn demanded a split of the two divisions. Meanwhile, most people who aren't associated with either company are still glaring at them with contempt.