(The Hosting News) – Online auction company eBay announced on Tuesday plans to separate its PayPal division into its own company sometime next year.
According to a press release, separating the companies will allow both to “capitalize on their respective growth opportunities” in their markets, creating “sustainable shareholder value.”
“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,” stated eBay CEO John Danahoe. “The industry landscape is changing, and each business faces different competitive opportunities and challenges.”
The company also announced that current eBay Marketplaces CEO Debin Wenig will become the new chief executive of the “new eBay.”
PayPal’s tax-free split is expected to be complete in Q2 of 2015.