Online retailer eBay has announced it is to split from subsidiary PayPal next year. eBay says its board of directors approved the move, following a strategic review of the company.
The two will become independent, publicly traded companies in 2015 subject to conditions.
eBay President and CEO John Donahoe said: "For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value. However, a thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively."
"The industry landscape is changing, and each business faces different competitive opportunities and challenges."
"eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets," he added.
The company says it expects to complete the transaction "as a tax-free spin-off" in the second half of 2015.
Mr Donahoe and company CFO Bob Swan will be responsible for leading the separation of each business. Devin Wenig - currently president of eBay Marketplaces - will become CEO of the new eBay.
Revenue over the last 12 months for these two businesses grew approximately 10% year-over-year to US$9.9bn (€7.86bn), with eBay Marketplaces accounting for about US$8.7bn (€6.91bn).
eBay Marketplaces and eBay Enterprise collectively handled approximately US$85bn (€67bn) of gross merchandise volume and gross merchandise sales, which grew 13% year over year.
Last June, the online payments firm PayPal said it was looking for 400 new staff in addition to the 1,000 positions it announced here in 2012. The two firms employ over 2,000 people at their Irish operations.
Adrian Weckler is technology editor with the Irish Independent.
