eBay is getting ready for big split with PayPal, selling its enterprise business to streamline operations. Bobbi Rebell reports.
eBay is streamlining operations ahead of the separation from its PayPal unit. The e-commerce giant is selling its enterprise business to a private equity-led consortium for $925 million. Meanwhile, PayPal is slated to begin trading on the Nasdaq Monday, creating a new company that some analysts say will be worth $40 billion. S&P Capital IQ's Scott Kessler SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "People are going to walk in, and eBay suddenly is going to be a much slower growth company, and, I think, you could perhaps see some folks taking a greater interest in PayPal, the publicly traded company than eBay." eBay also reported better-than-expected quarterly profits and boosted its share buyback plan by more than a billion dollars. But eBay's better-than-expected profits were driven by higher demand in the PayPal business. Revenue at the eBay side of the business, with its slow growing marketplace business, and facing Amazon competition, fell three percent, hurt by a strong dollar. Excluding that, though, it rose five percent.