Investors in Ebay Inc. (NASDAQ: EBAY) could see a sharp increase of the value of their investment if the Internet auction site would spin-off its PayPal on-line payment unit. A report at Bloomberg News points to a valuation jump of up to 30%. Ebay, in 2008 the world’s largest online commerce site, has fallen to a distant second in valuation to Amazon.com (NASDAQ: AMZN).
PayPal’s president Scott Thompson has left the company to take over as CEO at Yahoo! Inc. (NASDAQ: YHOO), but Ebay’s CEO said that PayPal will remain under Ebay’s umbrella. PayPal recently signed a deal with Home Depot Inc. (NYSE: HD) to make the on-line payment system available to Home Depot’s customers at checkout stands inside the company’s approximately 2,250 stores.
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