Forum

Info on the Ebay Paypal Split.....
 

I just found this online, not sure if it is true but very interesting info....enjoy..

Ebay owns 100% of Paypal. PayPal is simply one of eBay's divisions so they can do whatever they please as far as fees or managing clients on either platforms. So the split had nothing to do with fees or anything like that. The split happened for ONE reason only. Carl Icahn, an ACTIVIST investor and large, influential shareholder put an enormous amount of pressure on eBay to make this split happen. He was even able to win a seat on the board of eBay. Icahn feels that he can unlock the true value of PayPal if they had a split and the 2 companies were both separate. Donahoe, the eBay CEO put up a good fight against Icahn to fight this split. But Icahn won this battle. Ebay is a publicly held company, so the decision was made by the eBay shareholders in a vote. So Icahn eventually got his way. Many sellers that understood this battle are in favor of this split as it would reduce ebay's ability to hold PayPal payments when ebay buyers file a claim. Right now they can manage your PayPal account as they see fit. This will not be true in the future as PayPal will now be a separate company so eBay will only be able to 'request' that payments be put on hold during disputes. In a nutshell, this split is good for ebay shareholders, bad for eBay (as they will lose control of the payment portion of transactions), and for sellers... well ...you decide. In the beginning I imagine that PayPal will do a lot of cooperating with Ebay as far as agreeing to hold back client payments during claims and disputes, as eBay is now a "client" of PayPal and so PayPal will want to keep their client happy. So, don't expect a lot of changes in the short term. But if eBay does not have a non compete (I don't see why they should) then eventually they will be looking to create or acquire another payment provider that can keep things as they are currently (before the split) and keep that control over all transactions while they happen as well as after. Hope that info helps clarify things a bit. Lots of good info available on line regarding this recent battle between Carl Icahn and eBay's CEO John Donahoe.

Re: Info on the Ebay Paypal Split.....
 

There is a 5 year agreement in place for the split. While eBay can allow any other payment processors it wants to on the eBay platform, it cannot create it's own for 5 years.

I don't see any major changes in the near future.

ONE THING does have me just a tiny bit nervous. Now that PayPal is on it's own and does not have to defer to eBay, they can make their own changes now, some of which may be bad for stealth. But only time will tell.

Re: Info on the Ebay Paypal Split.....
 

The are new technology in place right now that will make stealth account more difficult to run IF PayPal start implementing those technologies in the furture. Many tech companies are getting rid of password logins and use bio logins instead. Need I say more? There's always a person or a group of people that will normally find a short cut around restrictions. Normally known as hackers... Access Granted!

But only time will tell.

Re: Info on the Ebay Paypal Split.....
 

You can't fathom the power and influence that Icahn has - he not only acquires companies but destroys them