“eBay Inc. said it plans to spin off its PayPal business into a separate publicly traded company next year, taking a page from the playbook of activist investor Carl Icahn, who had pushed for the company to split,” Michael Calia reports for The Wall Street Journal.
“The decision marks a sharp reversal for a company that spent a lot of time, energy and money earlier this year fighting Mr. Icahn and the premise that eBay would be better as two,” Calia reports. “It comes as Mr. Icahn has taken a bigger role within the company and as eBay faces fresh competition in the payments sector from Apple Inc., which unveiled this month a new mobile-payment service it hopes will shake up the industry.”
“”The industry landscape is changing, and each business faces different competitive opportunities and challenges,” eBay CEO John Donahoe said in a news release,” Calia reports. “The new Apple Pay service is intended to prompt shoppers to ditch their wallets and make purchases with an iPhone, and analysts have characterized the launch as a threat to PayPal.”
Read more in the full article here.
MacDailyNews Take: Behold, yet another industry faces upheaval and disruption at the hands of mighty Apple.
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Apple Pay set to radically change commerce – September 18, 2014
Banks race to gain Apple Pay advantage – September 16, 2014
Apple Pay triggers pure panic at PayPal, begets ‘dumbest ad campaign ever’ – September 16, 2014
Frightened PayPal slams Apple Pay in full-page newspaper ads – September 15, 2014
Wells Fargo brings revolutionary Apple Pay to customers and merchants – September 15, 2014
Apple gets 15 cents of every $100 Apple Pay purchase – September 12, 2014
Capital One partners with Apple on Apple Pay – September 12, 2014
Apple Bank is only a matter of time – September 12, 2014
The hidden brilliance behind the timing of Apple’s adoption of NFC – September 12, 2014
MasterCard SVP: Apple Pay trumps traditional credit and debit cards in security – September 11, 2014
Authorize.Net announces support for Apple Pay – September 11, 2014
Apple Pay’s myriad advantages over the $300 million Google Wallet flop – September 11, 2014
Apple Pay may boost sales of larger iPhones, hurt Android phone sales – September 11, 2014
Why Apple Pay will hurt PayPal – September 10, 2014
Apple Pay will demolish the barrier between online and offline shopping – September 10, 2014
Disney CFO: Apple Pay is a huge advantage – September 10, 2014
Pacific Crest: Visa, MasterCard, American Express boosted by Apple Pay – September 10, 2014
Apple to rake in fees from banks with Apple Pay mobile payments platform – September 10, 2014
Visa teams with Apple on Apple Pay mobile payments platform – September 10, 2014
MasterCard partners with Apple to integrate revolutionary Apple Pay – September 10, 2014
TSYS supports Apple Pay – September 10, 2014
Apple announces Apple Pay mobile payments – September 9, 2014
No! No! Focus on 9 bent iPhones not the reality of what Apple is really doing.
One ponders why the dolt Analasses do not get it by now. Apple is in a league of its own making. What? 9 bends? Out of 10+ million? Um … Yeah. China approval. What other tech company today has caused such upheaval in unsaid markets? I’m waiting… Dolt naysayers? Anybody?
This isn’t Apple disruption yet. This is another example of Carl Dipshit Icahn disrupting (or destroying) someone else’s business to line his own pockets. Even if this works out well for eBay and PayPal, it will work out better for that snake.
Although I hope Pay steamroles PayPal.
more blood on the scrollwh–er, touchscreen
Gazelle is offering a higher trade-in price if they sell now.
Spinning off PayPal into it’s grave more likely. I am ready for Pay! (I never liked Paypal and avoided it whenever possible.)
Except for the ripoff fees, PayPal is actually pretty good.
Will Apple reduce the fees?
Don’t count on it.
only time i use paypal is for ebay transactions and when i buy something on another website that accepts paypal with the line of credit they gave me. unless apple does that i’ll always use paypal
Many years ago, PayPal was innovative and was an essential element of making consumer web commercial go mainstream. Then the visionaries all cashed out (Elon Musk for instance) and the company has never recovered. After moving under eBay they had a very short resurgence, only to become mostly the most unpleasant piece of the eBay selling/buying experience. Spinning them off is probably the smart move for investors and yet also quickest way to send them to that grave.
PayPal- a Microsoft Company.
Newsflash in how many days/weeks/months?
Microsoft—a PayPal company
do you think ebay is spliting off paypal in hopes that someone may buy it? seems odd that would be the case, unless ebay has plans to offer another method for their users to process transactions