eBay and PayPal: Stronger Together?

05 March 2014 

eBay Inc. CEO John Donahoe believes that eBay and PayPal are stronger together, despite recent moves by investor Carl Icahn to split the payments service from the company’s namesake website. Icahn has recently nominated two business associates to the company’s board of directors, and publically questioned the integrity of two of its current members.

“EBay and PayPal we believe are stronger together than they would be apart. EBay helps PayPal grow faster by creating a flywheel effect because PayPal is the primary and, in some cases, exclusive way to pay on eBay,” Mr. Donahoe told the Wall Street Journal.

Donahoe also defended the integrity of all of the members of the board of directors, noting that when conflicts arise, members recuse themselves.

“The most important thing is to compose a board of people that have relevant experience, expertise, skill sets and a diversity of backgrounds, diversity of experience, and diversity of personality. That’s the best way for a board to help a company add shareholder value.”

PayPal’s revenue growth is set to outpace eBay.com’s within the next few years.

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