EBay may be spinning off PayPal: Report

David Paul Morris | Bloomberg | Getty Images EBay signage at the company's headquarters in San Jose, Calif.

David Paul Morris | Bloomberg | Getty Images
EBay signage at the company’s headquarters in San Jose, Calif.

Ebay is considering spinning off its payment service PayPal, according to a new report.

The Information reported that Ebay has been telling new recruits for PayPal’s CEO that the company may spin the payments service off as soon as 2015.

This move would represent a change of strategy, as Ebay CEO John Donahoe has previously publicly dismissed calls to spin-off the payments company.

Ebay began searching for a new PayPal CEO in June after the businesses former CEO David Marcus left for Facebook.

Read More Head of eBay’s PayPal unit steps down to join Facebook

In January, activist investor Carl Icahn made a call for eBay to spin off PayPal. However, eBay’s Donahoe said that the two businesses still work better together.

“What that argument is missing is the very strong synergies between the two businesses,” Donahoe told CNBC in an interview in January.

“It’s noteworthy that there has not been anyone else who has created another PayPal since PayPal was created. And that’s because commerce and payments are converging into one thing. A payments network needs a commerce network like eBay.”

Read More PayPal is stronger staying with eBay: EBay CEO John Donahoe

Read more on the potential spin-off on The Information’s website.

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