The PayPal spin off from eBay will be a spin off in name only …

PayPal revenues represented 45% of eBay Inc. revenues in Q2 2014 and 27% of PayPal’s revenue comes from the eBay marketplace. Johnny Ho was right about one thing, the reality is, these two clunky operators, eBay and “PreyPal”, are joined at the hip and neither one can now survive without the other in the longer term; this new arrangement will undoubtedly be “in name only”, with both parties retaining common directors and protective shareholdings, and underlying (“lying” being the operative word) agreements in place so that they can carry on exactly as before; such “spin off” should not fool any but the most naïve of investors or potential partners.

Will the spin off lead to a greater acceptance of PayPal? Only in Carl Icahn’s dreams …

All this “spin” indicates is that the headless turkeys on the eBay BoD and in the eBay executive suite are now becoming desperate to keep both organisations, particularly the eBay Marketplace, from becoming comatose; regardless, nothing is going to stop the Donahoe-damaged Marketplace from continuing to atrophy—notwithstanding that the “dumb money” on Wall Street may be getting excited by the thought of a spin off of the clunky “PreyPal”.

Even given that eBay’s destructive Johnny Ho may, finally, appear to be soon to “spend more time with his family”, the eBay Marketplace and “PreyPal” will both continue shuffling their way towards the palliative care unit—far too much damage has been done to the eBay Marketplace brand by the cretinous Johnny Ho for it now to be saved, and the clunky “PreyPal”, well, it’s now just one more—and still clunky—intermediary that will ultimately be buried in the off-eBay space—not by Apple Pay—but by the two new online/mobile app offerings from MasterCard (“MasterPass”) and Visa (“Visa Checkout”)—which are the only international players with direct “interactive” access to consumers’ funds/credit in the world’s retail banks. In the off-eBay space, MasterCard’s “MasterPass” and Visa’s “Visa Checkout” will soon enough drive the clunky “PreyPal” back into its eBay pine box—whatever there is left of the eBay Marketplace by then.

So, don’t let these disingenuous eBay shysters pull the wool over your eyes; regardless of the “spin” that they put on it, these two clunky operators are joined at the hip “until death do they part”, and, outside of the atrophying eBay Marketplace—except for its rightfully deserved place as the online merchant account provider of last resort—the clunky “PreyPal” is now effectively redundant …

For anyone holding shares in eBay, now is the time to take any profit you can and run for cover, as fast as you can, and I would not touch shares in any separated “PreyPal” with a forty-foot pole …