On Tuesday, eBay issued a statement saying they were in the process of restructuring the corporation and that PayPal would become a separate publicly traded entity. The online auction website purchased PayPal 12 twelve years ago in 2002 from a group that included Elon Musk of Tesla Motors. Now, the payment processor is responsible for generating nearly half of the online giant’s income.
Hedge fund billionaire, Carl Icahn said the separation of eBay and PayPal would create value for shareholders. While John Donahoe, eBay’s chief executive disagreed, saying he believed the company would come out stronger financially, in the long run, by keeping eBay and PayPal together as one corporation, Icahn won the argument. eBay expects the restructure to be complete by 2015.
By Donna W. Martin