Primarily Petroliana Shop Talk Forums Non-Petro Discussions Non-petro Discussion and Showcase Ebay and PayPal Splitting Up in 2015

just read this article this morning.... Apparently in 2015 PayPal will break off from eBay into a separate company.

Forbes Business Article

here is the email that all members received...

eBay Community:

This week, eBay Inc. announced it will create two independent public companies — eBay and PayPal — in the second half of 2015. This will ensure each business is best able to serve its customers' needs and thrive well into the future. You can read more about it here at http://www.ebayinc.com/

The creation of independent eBay and PayPal businesses will take up to 12 months to complete so this has no immediate impact on your account. Likewise, you can continue to count on everything you expect from eBay today. Innovation, value, trust, selection, and global reach will remain central to our business. And we will continue to work closely with PayPal to ensure payments remain a seamless part of the eBay experience.

As an active customer, you help make eBay what it is. eBay has always been more than a store. It is a community of people — buyers and sellers — connecting around the world. Thank you for being part of this amazing community. As we begin this next chapter of the eBay story, you have our commitment to make sure people like you remain at the heart of everything we do.

We are excited by the opportunity ahead and look forward to working with you in the future.

Best regards,
Christopher Payne
SVP, eBay Marketplaces

waiting for the other shoe to drop, I'm sure they did it for a way to take, I mean make more money off everyone.

Does this mean ebay will no longer be putting paypal payment as first and foremost?

Checks and money orders getting their foot back in the door?

I doubt it. Two companies will mean they can sell stock on Paypal and raise money. It will be interesting to see what the IPO wil be for Paypal....Assuming they sell stock.

it makes sense to me... they should be owned separately and have their own stock.

as an investor, I may want to invest differently in Paypal than I would in eBay... since Paypal completes transactions far beyond eBay.

From what I understand the move will allow Paypal to negotiate with other online businesses to increase it's business exposure. The two businesses will make more money not encumbered by business decisions made on one side effecting the other.

I believe this is being done out of recognition that they will be slowly taken over by competition from other companies who are starting to do the same thing they do. The way they are currently setup,for a company like Apple to buy them. They would have to buy ebay as well. Recognizing no one will want to buy Ebay and PayPal. Plus, that here shortly someone will try to join up with or take over all the major players in the market (sounds like Apple). PayPal is putting themselves in position to be bought, rather than be slowly picked apart by competitors. Watching their stock dwindle in value gradually. At the moment PayPal is thriving and growing. The stock is worth a great deal. In five years it doesn't appear that will continue. Between online banking and companies like Apple setting up their own PayPal modeled business. That trend won't continue. PayPal had a stronghold, almost a monopoly in this market. Now, people have caught on. Like any good business would do. They are preparing themself to get out while the getting is good. I wonder if they will auction the company off on Ebay.

You have a good point but ebays sales produce close to 50 percent of paypals profits. If ebay no longer uses paypal you have a company that is worth much less money, but then again todays stock market is built on speculation not company performance. Just look at how many over valued stocks are being traded today. Paypal will be offering up to 6 months for people to dispute an item if they are not happy. This is totally insane and will cause many users to shy away. Netflix is a perfect example of a pump and dump and a very overvalued company....look back to when they raised the rates. The stock fell close to $60 per share and today trades at $450 plus.if paypal does not step up their game they will fall to the wayside. Once the regular mechants walk away so will wall street.paypal is a very biased company as I deal with them on a daily basis. The more they side with the consumer the less end users they will have.

A good example of whats going on here is cell phone providers. There for a while, a bunch of smaller little companies popped up and did well for themselves. As soon as they became a legitimate threat. One of the major companies like Sprint or AT&T buys them out. It's the name of the game in business today. If you cant drive the competition out of business. You buy them or merge. Apple and the larger banks in the United States are going to, or already have, figured out an easier or cheaper alternative to PayPal. This has been an ongoing dispute for months now between the higher ups and stock holders. I wouldn't doubt if they have a deal already lined up with Apple.

Ebay is a very poorly run company. They have come to the point where they realized that other competiors will soon come into the marketplace and create a better buying experience for the consumer and a fair trading marketplace for the merchant. Alibaba's CEO has the right idea when it comes down to managing a business. Both parties must be happy and trade in a fair maket place. Many of the hardcore ebay sellers have left ebay as they are not treated fair The majority of ebay sellers are in the fixed price category and that is what ebay wants. They lost their core focus as an auction site and their business model is screwed up. I think there will be much better payment avenues in the near future and paypal will fall to the wayside. Now is the time for the competition to make the move. If they can capture the majortiy of payals non ebay related transactions the only valuation will be based on their ebay revenue.

I'm pretty sure they did this because of Apple Pay and other competitors. I'm actually really happy about this move. Ebay pushes paypal on everyone, but wonder what agreements were made between paypal and ebay as part of the break up. Would be great to have other options for payment, hopefully competition will bring paypal type fees down, ebay really had a monopoly-like business going holding both almost all auctions and online payments.

I agree Paul. I don't think PayPal was poorly run. As much as they could just do whatever they want due to the lack of competition. I'm sure Nothing will change with Ebay and PayPal. The story even said one of Ebays executives will be in charge at Paypal. The whole story was about this one guy insisting PayPal and its competitors join up in the online payment arena. I'm sure that's what will happen. Or PayPal will focus more on customer service and improving there service in order to compete. Either way, it's a win for consumers. Which is the entire point of competition and why monopolies are illegal. Obviously, someone noticed a demand for an alternative to PayPal and created one. If consumers arnt happy with Paypal. They can voice their unhappiness by using a competitors service instead. PayPal either makes adjustments, sells out, or goes out of business. .

This whole thing reminds me of when ebay went public. My brother was an early user of ebay, before they went public. They offered to all their users to buy at the IPO. I was pretty impressed with them at the time, my brother didnt want to buy but I wanted to put a couple thousand in but ended up forgetting about it or didnt have the $$$ at the time. Serious mistake, I don't want to even think what that two thousand would be worth now.

The question is. When does a real competitor to Ebay pop up?