The American multinational corporation eBay Inc. will split into two independent publicly traded companies in 2015 as eBay and PayPal, 13 years after eBay bought the PayPal payments company for $1.5 billion.
Ebay Inc. informed Tuesday that it has taken the decision following a strategic review of the company's growth strategies and structure.
"Ebay and PayPal, two great businesses with leading global positions in commerce and payments, have mutually benefited from being part of one company for more than a decade," eBay Inc. President and CEO John Donahoe said.
"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," he said.
Donahoe said the industry landscape is changing, and each business faces different competitive opportunities and challenges.
The Board of Directors of eBay Inc. concluded that "eBay and PayPal will each benefit more and create greater value from the strategic focus, speed, flexibility and agility that come with being independent publicly traded companies."
The annual revenue for eBay, founded in 1995, grew 10 percent (to $9.9 billion) during the last 12 months, whereas the annual revenue for PayPal grew by 19 percent (to $7.2 billion).
PayPal, founded in 1998 in the U.S., is the most trusted digital wallet with more than 152 million active registered accounts.
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