Days ago, eBay announced that it would be splitting its eBay-PayPal tandem into separate companies. By splitting the company, eBay seeks to allow for both companies to focus on its separate own goals and opportunities in a more effective manner.
The split is also away of boosting PayPal’s use as it has been regulated to “sidekick” or “additional offered service” when in tandem with eBay. As opposed to being essential to the operation of eBay—which would result in more money traffic through the service as a result of purchases—it is a “good to know it’s there” service. The new strategy could see PayPal pushed more aggressively, an approach that would be interesting to see given PayPal is roughly everywhere from commerce to donations to business transactions.
In the war room of the eBay-PayPal split, the head of eBay Marketplaces Devin Wenig will be assigned the post of eBay Inc. CEO. Dan Schulman will come in from American Express to serve as President of PayPal. Prior to taking the post, Schulman was Group President of Enterprise Growth. He also has a background in telecommunications being the initial CEO of Virgin Mobile as well as a president with Sprint.
The new structuring takes place later in 2015.