(MENAFN) eBay, US online retail titan, revealed plans to split PayPal unit, seeking to help the unit compete better in the online payment market, Oman Observer reported.
The plan follows months of pressure led by activist investor Carl Icahn, who had attacked eBay for poor management and claimed that keeping eBay tied with PayPal lowered the value of both.
The move comes with the online payments market facing challenges from the likes of Apple, which has introduced a mobile payments platform using its iPhones, and newcomers such as Square.
"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," Chief Executive said.
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