Dive Brief:
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After vehemently opposing the idea of eBay Inc. spinning off its payment unit, PayPal, the company is now seriously considering just that, according to sources quoted by the tech news website The Information, which has been picked up by several news outlets.
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EBay has apparently told several candidates for PayPal's open CEO position about the possibility. Former PayPal CEO David Marcus left in June amid rumors that he was fired.
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Activist investor Carl Icahn has been agitating for a PayPal spinoff from eBay since January, saying PayPal and its investors would benefit from going solo.
Dive Insight:
Early in the year, activist investor Carl Icahn began pushing for a PayPal spinoff, and there was much drama as eBay CEO John Donahoe and others pushed back hard. After meeting with Donahoe, Icahn backed off somewhat, saying a spinoff didn’t have to occur immediately. Perhaps that time is coming.