Re: Will EBay sell Paypal?
eBay won't voluntarily give up PayPal unless, as SandyD pointed out, they receive an offer that is so big, dollar-wise, that to not sell it would spark shareholder lawsuits. eBay, by law, MUST act in the best interests of their shareholders. They can argue that keeping PayPal IS in the shareholders best interests. But at some point, if the offer is large enough, then selling it would be about all they could do. Given the current state of the IPO market and the economy in general, I just don't see that happening.
Yes, PayPal has a lot of value in their brand name, but they are hardly immune from competition. And they are also, at least somewhat, at the mercy of the Visa and MasterCard merchant associations. If the associations make any significant rules changes, it could have a negative impact on PayPal. So it is difficult to see why a potential buyer would be willing to pay a large premium for it.
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