Ebay and PayPal to part ways


Score one for activist investor Carl Icahn: Ebay is divesting itself of PayPal, its online payment entity after 12 years together. The separation in which PayPal will become an independent publicly-traded company should be completed next year, according to a statement that said the Ebay board approved the move following a strategic review of the companies’ options. Ebay bought PayPal for $1.5 billion in 2002.

Icahn started motivating for a breakup last year and settled with eBay on the issue in April of this year when eBay added David Dorman, of CenterView Capital Technology, an Icahn pick, to its board.

ebayAs for the logistics, Devin Wenig, president of eBay Marketplaces, will become CEO of the new eBay post separation. Dan Schulman, of American Express, joins [company]PayPal[/company] as of now as president and designated CEO of the new PayPal.  All of this will be overseen by current [company]eBay[/company] CEO John Donahoe and CFO…

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