Ebay an online ecommerce company that acquired Paypal in 2002 has just announced plans to separate its business into two distinct and independent companies.
This will help these companies focus on their core services and ensure they capture most of the market share.
Current eBay Marketplaces chief, Devin Wenig will become the new eBay inc CEO when the restructuring is completed in the latter half of next year, while American Express Executive Dan Schulman has been recruited to helm the PayPal. He joins today as President and CEO-designee.
The separation of eBay from Paypal is what activist investor Carl Icahn has been pushing for both, publicly and behind the scenes.He now get his wish, as the eBay board of directors have finally agreed that there’s less to be gained from the synergy of the two companies than there would be from their independent operation.