Whether eBay Inc (NASDAQ:EBAY) will spin off PayPal, Inc. next year was discussed by Jessica Lessin, founder and editor-in-chief of The Information, in an interview on CNBC. Lessin said that she is not sure whether eBay Inc (NASDAQ:EBAY) will spin off PayPal next year, but has come upon information that indicates the company is still thinking about this possibility.
According to Lessin, what she wrote in her report on The Information is that when eBay Inc (NASDAQ:EBAY) has been interviewing candidates for the top post at PayPal, Inc., they have asked these candidates whether or not they would be prepared to head the company as a separate entity.
This detail shows that eBay Inc (NASDAQ:EBAY) is still pondering whether or not PayPal, Inc. should be spun off. However, Lessin said that it is still uncertain whether eBay Inc (NASDAQ:EBAY) PayPal, Inc. has decided what to do regarding this issue.
Meanwhile, Lessin said that based on the information that she has gathered, John Donahoe, president and CEO of eBay Inc, already has someone he thinks should take the top position at PayPal. This means that Donahoe is not considering heading to PayPal, Inc. if ever eBay Inc decides to spin off the company.
According to Lessin, she thinks the story behind PayPal, Inc. at the moment is that the supporters of the spin-off see a better future for the company if it were independent to increase innovation and growing the market. She added that it seems an inevitability that PayPal, Inc. will be its own company some time in the future. The question that should be asked is how eBay Inc will spin off PayPal, Inc., she said.
Carl Icahn‘s Icahn Capital LP owns a substantial amount of eBay Inc stock as it reported about 30.8 million shares in the company by the end of the first half of the year.