It's over: ebay is splitting up with PayPal.
The company said on Tuesday that the online payments service would once again be a separate business by the end of 2015.
eBay said that after "a strategic review of the company’s growth strategies and structure" its board decided the two businesses would be better off going it alone.
Of the two businesses, PayPal is growing more quickly, registering 19% revenue growth year-on-year. But it still lags behind in overall revenue (eBay takes in $9.9bn a year compared to PayPal's $7.2bn).
eBay bought PayPal in 2002 primarily to make payments on its auction site more trustworthy and quick for new customers, and it's proven to be a huge success: even as new entrants into the payments space like Apple Pay emerge, PayPal is still adding another 20 million users a year as of 2013.
“eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay Inc. President and CEO John Donahoe. “For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value.ADVERTISEMENT
"However, 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. The industry landscape is changing, and each business faces different competitive opportunities and challenges.
“eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets."