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Ebay spins off Paypal next year

by kencalhn
12 replies
interesting news:

EBay spinning off PayPal as separate company - Sep. 30, 2014
#ebay #paypal #spins #year
  • Profile picture of the author Doughnuts
    Interesting news. I will be following this story.
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  • Profile picture of the author RogozRazvan
    PayPal revenue: 5.8 bil.

    eBay revenue: 16.05 bil.

    Makes sense.
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  • Profile picture of the author HelpingYouBeAnExpert
    I like it, the more focused the business the better.
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  • Profile picture of the author eugenedm
    Having separate company makes sense because everyone can do their job right and they don't interfere with each other!
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  • Profile picture of the author spearce000
    Watch the charges go up now. Happens every time (or seems like it).
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    • Profile picture of the author seekdefo
      Originally Posted by spearce000 View Post

      Watch the charges go up now. Happens every time (or seems like it).
      I hope no. It's already high, starts at 4.4 and never ends. Also the conversion rates while receiving money are low and they are high while sending cash.
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      • Profile picture of the author Sid Hale
        This, of course, depends on :
        1. what country your Paypal account is in, and
        2. whether you are receiving monies from an international source.


        Originally Posted by seekdefo View Post

        I hope no. It's already high, starts at 4.4 and never ends. Also the conversion rates while receiving money are low and they are high while sending cash.
        U.S. Merchants pay 2.9% + $.30 on domestic transactions (or less, as your transaction volume increases) and for international transactions, they pay a 3.9% transaction fee plus a fixed fee based on currency received.

        note (for U.S. merchants) - if your volume exceeds $100,000 per month, you can call Paypal to negotiate.
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  • Profile picture of the author mattbarrie
    Sell-side rings the register on eBay • 8:03 AM
    Stephen Alpher, SA News Editor
    Following yesterday's 7.5% gain in eBay (NASDAQ:EBAY) amid the PayPal spinoff announcement, Jefferies, JPMorgan, JMP Securities, and Wedbush all pull their Buy (or Buy equivalent) ratings on the stock.
    "We do not see benefits to the PayPal business from the spin-off and expect some profit leakage to eBay, as well as dis-synergies," says Wedbush's Gil Luria. "Given the more favorable structure to BABA vis-à-vis Alipay, we would expect a commercial agreement between PayPal and eBay to be somewhat less favorable to PayPal compared to the current presentation of the profit split."
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  • Profile picture of the author onegoodman
    I think this separation would be good for both companies. PayPal has been loosing ground for a while now with many flaws in their systems to their competitors, They need to have better plan than relying on eBay.

    For eBay, I hope PayPal will not always be their gateway, it will help them raise their revenue partnering with various payment gateways.
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  • Profile picture of the author M1ks
    Thanks for sharing!
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