Rob Cyran and Jeffrey Goldfarb discuss the prospects for an independent PayPal following eBay's belated decision to spin off its online payments operation.
Massive U turn today from eBay which is finally decided to spin off PayPal. Resisted calls from Carl Icahn and breaking views and others to do it for years. Looks like apple and Alibaba maybe more but it but it generally shareholders could could manage I mean John. I have basically admitted the call saying that you know the -- games -- the apple and payments and Allen about what kind of meant that competition is heating up and you know they they certainly played a course on the call that you know. -- great opportunity. That we can spin off these businesses pay pals can mean so well that's kind of amusing because just yet several months ago in earlier this year you're saying no they don't. Along at all and it wasn't just like resisting what icon who had stepped up with a -- to look he has has been as they saw it wasn't just. Now we think we're OK it was this very aggressive campaign saying that I have this thing works really well again. And it did for years that was the thing because eBay and provide lots of customers it cheap financing to PayPal and PayPal group. Tremendously grew by 25% per year which is great the thing is that eventually became so big that 70% of its clients now come from outside of eBay. And that's the kind of hinder its -- think about it you know if you're Amazon if you want to close partnership with PayPal know you probably don't because he -- because had a very. And other e-commerce companies as well they they were reluctant to work closely with PayPal. And that's been a big opera to the big opportunity for other payments companies visa and MasterCard. So right so I mean you paper towel with the eBay have this massive lead in payments really taking on -- -- fifth. And certainly a lot of people piled into the space. This PayPal have -- off. Once it becomes -- dependent to sort of either catch up or should stay at it in May because the opportunities so they didn't think about most people still these cash for most transactions. So there's -- there's so much growth and then you know -- you came -- just kept you know we parents are just catching on. So it's not as if the markets really settled in the never ever suspect who's gonna win it's it's more it's happening everything's happening so quickly that it. Because it's got existing business and it's big they have an opportunity still ahead of them parent or leave it there rob and doubt we will be back with more breaking news tomorrow.