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eBay May Spinoff PayPal Into Separate Company, Report Says

by Jacob Kleinman | August 21, 2014August 21, 2014 10:00 pm PST

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eBay is still considering spinning off PayPal into a separate firm, a report said Thursday, despite earlier claims that the two companies would remain closely linked. The news comes as mobile payments continue to heat up, offering PayPal (which also owns Venmo) a chance to dominate the growing market.

eBay hasn’t made an official announcement either way, but the company is apparently telling potential new employees that it may spinoff the online payments giant as soon as early 2015, The Information said Thursday. Former PayPal president David Marcus jumped ship to take over Facebook Messenger earlier this summer and the company’s still looking for a replacement. It’s possible eBay thinks it needs to establish PayPal as a separate firm in order to attract a qualified new leader.

PayPal likely has the potential to expand far beyond its current scope when it comes to mobile payments, but the move could be tough for eBay, which is already engaged in a growing turf war with Amazon over online retail.

The Information

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...