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| Version 2 | Version 3 |
|---|---|
| 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. |
| Its payment system is available in 203 markets worldwide and is expected to process 1 billion mobile payments this year. | Its payment system is available in 203 markets worldwide and is expected to process 1 billion mobile payments this year. |
| PayPal's annual revenue is $7.2bn (£4.5bn), while eBay's is $9.9bn and is growing at 10% a year. | 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. | The move marks a reversal of strategy for the company. |
| Resistance | Resistance |
| Mr Donahoe, said: "The industry landscape is changing, and each business faces different competitive opportunities and challenges." | Mr Donahoe, said: "The industry landscape is changing, and each business faces different competitive opportunities and challenges." |
| 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. | 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's shares were 11% ahead of the official start of trading in New York. | EBay's shares were 11% ahead of the official start of trading in New York. |
| 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. | 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. |
| PayPal's new president and chief executive will be the current American Express co-executive Dan Schulman. | PayPal's new president and chief executive will be the current American Express co-executive Dan Schulman. |
| Meanwhile, Devin Wenig, currently president of eBay Marketplaces, will become the new chief executive of eBay. |