EBay to spin off PayPal in 2015

EBay Inc. announced it would spin off PayPal, its fast-growing payments business, into a publicly traded company in the second half of 2015.

According to Reuters, eBay CEO John Donahoe had resisted demands to split the companies by activist investor Carl Icahn, saying the services were integral to each other.

"A thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively," Donahoe said in a statement on Tuesday.

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