Online auction outfit Ebay has changed its mind about Paypal and might spin off the fast growing unit.
For a while now it has been suggested that Ebay should off-load Paypal to make a fast buck. In fact, activist investor Carl Icahn has said as much. But EBay CEO John Donahoe said that PayPal was important to eBay’s business and a split would not make sense.
However, EBay told potential candidates for the position of PayPal chief executive officer, a post that David Marcus vacated in June, about a possible spinoff of the payments unit.
EBay spokeswoman Amanda Miller clearly did not get the memo and insisted that that board will continue to “assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal.” This position has not changed said.
It is a little odd that Ebay is thinking about it. Donahoe won Icahn over to his point of view. Ichan backed off from his demand in April, saying that while he supported a PayPal split in the near future, now was not the time. Although that was April and thinks might have changed by the end of the year.
