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eBay and PayPal to become independent companies in 2015

Following a strategic review of the company’s growth strategies and structure, eBay Inc. has approved a plan to separate the its business from PayPal into independent publicly traded companies in 2015.

The plan is tow create two standalone businesses that best positions eBay and PayPal and capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape.

“eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay Inc. President and CEO John Donahoe. “For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value. However, a thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively. The industry landscape is changing, and each business faces different competitive opportunities and challenges."

eBay expects to complete the transaction as a tax-free spin-off in the second half of 2015, subject to market, regulatory and certain other conditions.

Devin Wenig, currently president of eBay Marketplaces, will become CEO of the new eBay company and will lead the eBay Marketplaces and eBay Enterprise businesses. Meanwhile, Dan Schulman has been appointed as President of PayPal, effective immediately, and CEO-designee of the standalone PayPal company following separation.