Rumours were confirmed this week when eBay Inc.formally announced that it is to create two independent public companies for its eBay and PayPal businesses.
The development will take around 12 months to complete, subject to clearance by the authorities, and is seen by many as key to supporting eBay’s marketplace business in the light of growing competition from the likes of Alibaba, as well as providing Paypal with the autonomy it needs to compete for business in the wider payment processing space where mobile is now fuelling new offerings from the likes of Apple, Google and Zooz. Certain pundits suggest that this may the first stage for preparing the two businesses for onward sale and that they will be worth considerably more and be more appealing as separate entities. Payal, it is said, will likely find an immediate buyer keen to leverage its estimated 152 million active accounts.
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