A big story is the news this week is that Ebay is planning to spin-off PayPal into their own company. What are the advantages of such a move?
On one side, I see this as only weakening Ebay, as it now has substantially less product to offer directly. On the other side, I presume that the heads of each company will be synchronized (if not the same person(s)?), which begs the question of whats the point if nothing changes?
Ebay stocks went up 7.5% today, so investors seem to like this idea, but why?