This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Facebook Snaps Up David Marcus From Paypal -- Are FB Payments Next?

Stocks in this article: CSCO EBAY FB TCEHY TWTR YHOO

NEW YORK (TheStreet) -- On Monday, David Marcus -- who had been running eBay's (EBAY) PayPal -- made the announcement that he was leaving his post in order to take a job at Facebook (FB).

WATCH: More videos from Jim Cramer on TheStreet TV

There was an immediate reaction on Twitter (TWTR) to the news that this was a big steal of a top exec by Facebook. Some concluded that this hire was a sign that Facebook was about to move into payments in a big way. Others said it was a sign that Facebook was about to copy Tencent's (TCEHY) WeChat, which has been a global leader in tying their popular messaging app to payments.

None of us knows what really went down to drive Marcus's decision to leave PayPal and for Facebook to offer him a job. And we probably never will. However, this move raises more questions than it answers about the direction of both companies.

Here are some alternatives to the kneejerk reaction to the news yesterday: 1. Did Marcus really leave PayPal to take this job -- or was he pushed?

After the news broke yesterday, I tweeted to ask what Marcus's PayPal legacy would look like in two years.

VC Keith Rabois immediately tweeted back: "The rise of Square and Stripe." Keith should know. He worked at Square as COO and now is a backer of Stripe. But his point is a good one: it's difficult to identify how Marcus has helped PayPal in the last three years.

When he was appointed -- after its former head Scott Thompson decamped for Yahoo! (YHOO) -- Marcus was seen as a guy who got mobile and would finally make PayPal into a mobile company. Things have improved but it's tough to see that there's been huge progress here.

Is it all his fault? Probably not.

He was hamstrung by the fact his boss, John Donahoe at eBay, refused to spin off PayPal. Maybe Donahoe was frustrated with Marcus' performance and told him to leave but that he could spin it as if he was taking another job.

2. Maybe Donahoe really wanted Bill Ready to run PayPal.

To me, Marcus' biggest accomplishment during his tenure was that he bought payment start-up Braintree, and brought on board its CEO Bill Ready. Maybe Donahoe saw Ready, not Marcus, as the guy who could finally deliver PayPal to the promised land of mobile.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs