Dive Brief:
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PayPal sailed by its ex-parent eBay Monday in its first official trading day as a public company, with its value nearly hitting $49 billion. EBay closed with a valuation of $35 billion.
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EBay is a company in need of a turn-around — some, including Forrester retail analyst Sucharita Mulpuru, say a major turnaround. “The real question is whether eBay can execute on a McDonalds-like turnaround plan,” Mulpuru told Fortune, referencing another popular company in need of a turnaround.
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The two companies have finally split after months of pressure from activist investor Carl Icahn and resistance from eBay’s (now former) CEO and board.
Dive Insight:
It’s the day after the much-anticipated big split of PayPal and eBay and all eyes are on eBay, wondering what the company will do to get out of the doldrums. Wasting no time to answer this question, Re/Code reported yesterday, eBay has aquired second-hand clothing e-commerce startup Twice, boosting its online marketplace of used clothing amid growing compitition in the area.
And while PayPal is now one of the most highly valued companies out there, it, too, has a lot of work to do.
By and large, investors believe in PayPal at the moment because by shedding its parent, it has more freedom and flexibility to develop as a payments company. But, while it has bulk, strength, and international reach, it must catch up to much of its upstart competition when it comes to mobile payments and other areas.