eBay acquired PayPal 12 years ago and now the official split is set to occur next year. The companies will trade as two entirely separate companies and PayPal will focus on separating data so other companies will feel comfortable using them again.
The companies have been doing a lot of explaining since eBay’s CEO, John Donahoe, spent months earlier this year insisting that eBay and PayPal were “better together”. Activist investor Carl Icahn pressured Donahoe at the beginning of 2014 to split the company, but Donahoe and eBay’s board successfully resisted the pressure in winning a proxy fight. Months later, during the company’s annual strategic review, they decided that splitting in 2015 really is the right move for each company.
“PayPal’s a jewel and eBay is covering up its value,” said Icahn earlier this year. Both companies will be getting new CEOs as part of the deal.
eBay Marketplaces President, Devin Wenig, will be taking over eBay, and current PayPal President Dan Schulman, will take over PayPal.
eBay’s current shares are higher since announcing the split from PayPal.