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| Ebay to split off PayPal business | Ebay to split off PayPal business |
| (35 minutes later) | |
| The online auction site eBay is planning to split off its payments system PayPal into a separate company. | The online auction site eBay is planning to split off its payments system PayPal into a separate company. |
| It expects to do that in the second half of 2015. | It expects to do that in the second half of 2015. |
| EBay's chief executive John Donahoe said: "A thorough strategic review... shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively." | EBay's chief executive John Donahoe said: "A thorough strategic review... shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively." |
| PayPal's revenues are growing at 19% a year, twice as quickly as eBay's. | PayPal's revenues are growing at 19% a year, twice as quickly as eBay's. |
| PayPal's annual revenue is $7.2bn (£4.5bn), while eBay's is $9.9bn and is growing at 10% a year. | |
| The move marks a reversal of strategy for the company. | |
| Earlier this year the activist investor, Carl Icahn, began pressing for eBay to sell PayPal, a plan that was resisted by the eBay board. He stopped pushing after failing to gain enough support. | |
| eBay bought PayPal in 2002 for $1.5bn (£905m), and the payments company is now the Silicon Valley firm's fastest-growing business, with 143 million active users at the end of 2013, up 16% from a year earlier. |