eBay.com, the world’s biggest online marketplace, said it would split off its payments arm PayPal.com, finally bowing to pressure from activist shareholder Carl Icahn after nine months. Bloomberg Intelligence’s Paul Sweeney speaks on “In The Loop.” (Source: Bloomberg--Sept 30)
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EBay Does About-Face in Decision to Spin Off PayPal - NYTimes.com: "... after months of long discussions about where the e-commerce industry was headed — the emergence of new payment standards; the rise of cardless payment systems for services like Uber; the hotly anticipated market debut of the Alibaba Group — John J. Donahoe, the company’s chief executive, and his other directors began to see merit in setting PayPal free. We “got to the same place that Carl [Icahn] said early on,” Mr. Donahoe said in an interview. By September, the directors had formally decided to pursue a strategy that their onetime nemesis had advocated all along..."
eBay to shed PayPal as competition increases - San Jose Mercury News: "Launched by such Silicon Valley luminaries as Elon Musk, Peter Thiel, David Sacks, Reid Hoffman and Max Levchin -- known as the PayPal mafia -- PayPal's annual revenue has ballooned from $1.4 billion in 2006 to $7.2 billion over the past 12 months. PayPal's revenue grew 19 percent over the past 12 months, compared with eBay's growth of 10 percent."
And of course, Alibaba has its own online payment platform, Alipay.
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