“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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