But articles this year hint that eBay could be hindering PayPal's growth.
A Forbes cover story in March indicated that Marcus was annoyed, at times, with running PayPal as part of eBay. Though Marcus told Forbes he believed PayPal could dominate the retail world, he expressed frustration with trying to keep PayPal nimble within a much larger organization. Forbes quoted Marcus as saying: "It's really brutal. At large companies you always find someone with reasons not to do something -- the self-preservation thing is highly frustrating."
eBay fell 2.7% to a 52-week low after the news. Some of that fall, however, was likely continued reaction to Amazon (AMZN) launching a service allowing people to pay bills off Amazon with their Amazon login details. The "pay with Amazon" program taps into the payment information stored on Amazon's site to pay bills. Like PayPal, Amazon promises security and to "eliminate the hassle" of multiple accounts.
$EBAY 1. Facebook stole their paypal chief. 2. Amazon is embarking subscription payment service. 3. Icahn investigation.? Gregory (@bullfight) Jun. 9 at 05:56 PM
Still, many investors believe that eBay must back off to ensure PayPal can remain a payments juggernaut and retain entrepreneurial talent like Marcus. And that means a spinoff or some other action. Otherwise, investors may move their money to the tech companies where eBay's top talent has headed.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.