Online auction house eBay is considering selling its PayPal unit next year, according to media reports. Tech site ‘The Information’ stated that during interviews for the vacant position of president of PayPal, candidates were informed about the potential sell-off.
PayPal could be spun off by parent eBay
eBay has been coming under sustained pressure from investors and shareholders to sell PayPal, with notable investors like Carl Icahn claiming that eBay is standing in the way of PayPal’s growth.
Payment industry experts also claim that PayPal has reached the stage where it can be considered a viable competitor to the likes of the major payment networks like Visa and MasterCard. However, PayPal itself is keen to emphasise that it considers itself a partner to industry incumbents and not a competitor.
In responde to the media report, eBay released a statement saying: “The eBay Inc. board and management team remain focused on maximising shareholder value. 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.”
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