Will eBay Spin Off Paypal?

Updated

In today's episode of MarketFoolery, our top analysts answer a viewer's question, "Will eBay spin off Paypal?" Joe Mayger seems very confident that this will happen in the next few years. He expects them to hang onto Paypal until after the discover deal comes to fruition, and then do an equity carve out, where they sell a small part of the business to create a currency for the stock, and then sell off the rest at a higher price.

Realistically, there is no reason to wait for the spinoff, though, as both companies continue to perform well in their current state.

If eBay should decide to spin off Paypal, it also frees up the payments platform to operate more freely with competitors like Amazon (NAS: AMZN) . Doing so would be an enormous win for Paypal, as Amazon has forever changed the retail landscape.

To learn more about Amazon's dominant, and growing, position, you should read our premium report on Amazon, which runs through everything investors have to know about the company. Our report also has you covered with a full year of updates as key news hits, so click here now to get started.

The article Will eBay Spin Off Paypal? originally appeared on Fool.com.

Chris Hill owns shares of Amazon.com and eBay. The Motley Fool owns shares of Amazon.com and MasterCard. Motley Fool newsletter services recommend Amazon.com, eBay, and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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