eBay’s Donahoe Prepared To Spin Off PayPal

Might "do what we did with Skype"

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Despite being on the job for less than six months, new-ish president and CEO of eBay John Donahoe certainly isn’t afraid to make changes.  Even as obstacle after obstacle pops up to interfere with the sale of Skype, Donahoe announced that he often considers parting with PayPal.

A Bloomberg article reported that, at the Shop.org 2009 Annual Summit, "He said he regularly asks himself whether eBay is hampering PayPal’s development."

That may not be just an idle, pass-time-in-the-shower sort of question, either.  It almost sounds like Donahoe’s already got the support of eBay’s board of directors if he decides to make a move, since the CEO then stated, "When I feel the business will be better off separately, we’ll do what we did with Skype."

And eBay’s stock is up 1.13 percent in pre-market trading, which might indicate shareholder approval.

What do you make of this development?  Let us know in the comments section below.

One last thing to note is that Donahoe didn’t hint at any sort of timeframe, so whether he’s thinking about the long term or initiating a sale next month is hard to say.

eBay’s Donahoe Prepared To Spin Off PayPal
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  • Eric Calisto

    For Real.. This is what eBay needed all along. Users will thank Donahoe. I don’t use eBay for the fact that they force PayPal upon you. I use PayPal for other transactions. If they did this, I would use PayPal and eBay. Win-Win for them!

    • http://www.goforth-andy.com Andy

      Never did fully understand why so many people dislike Paypal..
      But I’ve never had any problems with them

  • http://www.onlinelessonreviews.com Mark

    I don’t really understand why this a problem… the eBay and PayPal integration is one of the very convenient features that eBay provides.

    • Dodo

      Its not about disintegrating PayPal from ebay sites. Even if ebay board goes ahead with spin-off decision, it would still have PayPal feature in ebay site. Only the PayPal management will be given to a diff set of execs which will enable those rivals of ebay also to offer PayPal in their ecommerce sites.

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