Be the most informed person in the room with Newsy's free e-newsletter

View our privacy policy: http://www.newsy.com/privacy/
Getty Images / Joe Raedle

Futures Uncertain For eBay, PayPal After Separation

Once the perfect couple, PayPal and eBay formally separated Monday.

By Matt Patston | July 20, 2015

When eBay bought PayPal in 2002, they couldn't have fit more perfectly together.

Both businesses were booming, and their services were complementary: Use eBay to shop for something and use PayPal to pay for it. 

Oh, how things have changed: the two companies have officially split. PayPal's Nasdaq moniker is now PYPL

Article Continues Below

Partially due to pressure from billionaire investor Carl Icahn, eBay wants to focus on other parts of the company. That's just fine with PayPal, which walks away from the breakup with $5 billion and a bigger market cap than eBay

EBay faces a tougher road ahead. The company's former CFO said, "Things will get worse in the first half of 2015 before they get better."

But both companies face steep challenges in the e-commerce business as they venture out on their own, including expansion from giant companies like Apple, Amazon and Alibaba.

Both eBay and PayPal are under new leadership, both with plans for success. 

But PayPal has to relearn the ropes of independence, and eBay isn't the company it was in 2002. 

This video includes images from Getty Images.

Want to see more stories like this?
Like Newsy on Facebook for More Business Coverage