PayPal Eclipses eBay's Core Business Prior to Spin-Off
As the planned spin-off of PayPal into a separate company nears, eBay’s payment service continues to drive the company’s growth. In the first quarter of 2015, revenue of the payments division amounted to $2.11 billion, up 14% from the same period in 2014.
Meanwhile eBay’s core business, the marketplaces division, saw revenues decline for the first time in years and is now no longer eBay's biggest source of revenue. With sales of $2.07 billion, eBay's namesake auction site and other marketplaces owned by the company now generate less revenue than the soon-to-be spun-off PayPal does.
While the latest results don't necessarily spell doom for eBay's future without PayPal, they won't do much good in silencing the doubts in the company's growth prospects as a stand-alone company either.
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