Corporate Strategy | Online Course Support

In 2015 eBay spun-off PayPal. As one justification for this spin-off, the board stated “The benefits of the existing relationships between eBay and PayPal will naturally decline over time and can be optimized in arm’s length operating agreements between the two entities. Arm’s length operating agreements can formalize the existing relationships between the two companies and capture ongoing synergies.”

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It is stated that synergies between eBay and PayPal are expected to decline over time and no longer require joint ownership.

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