eBay CEO On PayPal, eBay Marketplace As A Standalone Company

eBay Inc (NASDAQ: EBAY) came out with better-than-expected results recently, and its payment unit, PayPal, launched a new instant checkout service Tuesday.

Now that the separation of PayPal from eBay is soon to be a reality, EBay CEO John Donahoe was on CNBC discussing the spin-off.

Two Great Companies

"We think we are going to be creating two great companies with eBay and PayPal," Donahoe said. "PayPal will be a fast growing company and a very dynamic payments market, and eBay Marketplace is a great business. It's got $80 billion of volume, 150 million consumers around the world, growing at 5 percent volume growth, 5 percent in the first quarter."

Related Link: Facebook, eBay See Sharp Drops In Short Interest

He continued, "It's a great business that produces strong margins, strong cash flows. So, it can offer investors good growth prospects as well as the potential for strong capital return. So, we think as a standalone company, it offers a very attractive value proposition for investors."

Marketplace Growth

Donahoe was asked if he believes that there is significant growth yet to be had in eBay's marketplace business. He replied, "Absolutely, e-commerce is still growing double digits, and the Marketplace is the only third party marketplace that doesn't compete with its sellers. Strong global footprint and Devin (Devin Wenig, president of eBay Marketplaces) is focusing the eBay business even more strongly on its core customers.

"Investing in the underlying platform so it can expand, continue to expand internationally, upgrading the user experiences. The new iPad app is the freshest eBay experience yet. So, I think there's lots of growth potential in the business," Donahoe concluded.

 
Image Credit: Public Domain