eBay CEO: PayPal Will Be A Fast Growing Company,eBay Marketplace As A Standalone Company Offers Very Attractive Value Proposition

eBay Inc EBAY came out with better than expected results recently and its payment unit PayPal launched a new web instant checkout service today. Now that the separation of PayPal from eBay is soon to be a reality, EBay CEO John Donahoe was on CNBC Tuesday to discuss the spin-off.

Two Great Companies

“We think we are going to be creating two great companies with eBay and PayPal,” Donahoe said. “PayPal will be a fast growing company and a very dynamic payments market and eBay marketplace is a great business, its got $80 billion of volume, 150 million consumers around the world, growing at 5 percent volume [growth], 5 percent in the first-quarter.”

He continued, “It’s a great business that produces strong margins, strong cash flows. So, it can offer investors good growth prospects as well as the potential for strong capital return. So, we think as a standalone company it offers a very attractive value proposition for our investors.”

Marketplace Growth

Donahoe was asked if he believes that there is significant growth yet to be had in eBay’s marketplace business. He replied, “Absolutely, e-commerce is still growing double digits and the marketplace is the only third party marketplace that doesn’t compete with its sellers. Strong global footprint and Devin (Devin Wenig, president of eBay Marketplaces) is focussing the eBay business even more strongly on its core customers.”

“Investing in the underlying platform so it can expand, continue to expand internationally, upgrading the user experiences, the new iPad app is the freshest eBay experience you got. So, I think there’s lots of growth potential in the business,” Donahoe concluded.