EBay Inc is considering a spinoff of PayPal, its fast-growing payments unit, as soon as next year, tech news website The Information reported, citing sources.<\/p>\n
Shares of the online retailer jumped nearly 4 percent to $55.48 at midday.<\/p>\n
EBay told potential candidates for the position of PayPal chief executive officer, a post that David Marcus vacated in June, about a possible spinoff of the payments unit, the website reported. Marcus is now a Facebook Inc executive.<\/p>\n
A PayPal spinoff would mark an about-face for the company. EBay CEO John Donahoe has resisted demands by activist investor Carl Icahn to hive off the payments service, saying PayPal was integral to eBay’s business – and vice versa – and a split would not make sense.<\/p>\n
“The board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal. This position has not changed,” eBay spokeswoman Amanda Miller said.<\/p>\n
Whether eBay has decided to spin off all or part of PayPal, and what structure that could take, remained unclear, The Information reported.<\/p>\n
Icahn eventually backed off from his demand in April, saying that while he supported a PayPal split in the near future, now was not the time. Some investors, however, feel an independent PayPal can grow by attracting online retailers wary of rival eBay.<\/p>\n
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