eBay Might Make PayPal a Separate Company to Soothe Naysayers of Their Close Relationship

By Tom Pritchard on at

The relationship between eBay and PayPal is far too close for some people's liking, when you consider that PayPal is actually owned by the auction giant. But that might change since reports indicate that eBay is considering spinning off PayPal next year, turning it into its own separate business.

Apparently the move is something that investor Carl Ichan has been pushing for for some time and, despite opposition from eBay CEO John Donahoe, investors are warming to the idea. The hope is that separating the two companies will attract online retailers who are currently hesitant of PayPal's close relationship with eBay.

Amanda Miller, an eBay spokesperson, said "The 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."

That's not a confirmation or a denial, but it's worth pointing out that candidates for the currently vacant position of PayPal CEO are apparently being warned about the potential split.

Would it change much about how the two services work? Probably not. [The Information via Digital Spy]