Ebay can select PayPal as an independent company
According to the newspaper The Information, Ebay company next year will allocate subsidiary PayPal as a separate company. The publication notes that the current leadership of PayPal has been instructed that in the future, they are likely to work in a private company. The Information notes that the decision on the allocation has not been made final, but discussed at the level of senior management. Earlier, Ebay CEO John Donahoe has been criticized by shareholder Carl Icahn Ebay, saying that the company can not unleash the full potential of the payment system PayPal, since the latter does not have a sufficient degree of autonomy and can respond quickly to changing market conditions.
In April this year, the parties reached an agreement, taking the board of directors of the new director, representing the interests of minority shareholders, including Carl Icahn. Now, according to unofficial data, in PayPal is an internal process of selecting candidates for the post of Director General, but it is far from completion. In addition, management prepares Ebay updated strategy for the development of the payment system, which will not be so closely tied to the online platform.
Following the publication of data on the possible allocation PayPal Ebay shares rose 4.8% to 55.89 dollars. According to the latest report of the company's revenue for the last quarter PayPal grew by 20%, while the main Ebay business grew by only 9%. The Information notes that the funds received from the allocation of the company Ebay PayPal can be used for internal development, the purchase of other companies or buy back shares. At the same time, the publication noted that CEO Ebay was and still is against the deal, believing that Ebay and PayPal will organically grow together, rather than separately.
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