SAN FRANCISCO (TheStreet) – eBay (EBAY) investors heavily bid up the stock, after the company announced it would spin off its payment processing arm PayPal. In addition, the online auction giant also announced its embattled CEO John Donahoe would step down once the spin off is completed, which is expected to occur in the second half of next year.
Shares of eBay rose 7.54% to $56.63 at the close, while the broader markets were in the red across the board.
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In the backdrop of this unfolding drama had been activist shareholder Carl Icahn, who had been pushing for the PayPal spin off earlier this year. In April, the parties reached a settlement, in which Icahn received a say in eBay's selection of a new director. The company appointed former AT&T CEO turned investor Dave Doorman.
After the split, eBay will be headed up by Devin Wenig, currently its eBay Marketplaces president, while PayPal will have former American Express (AXP) Enterprise Growth Group President Dan Schulman as its CEO.
Shares of Move (MOVE) were on the go, charging upwards of 37.08% to close at $20.96.
The online real estate listing platform company, which operates such sites as Realtor.com, struck a deal with News Corp. (NWS) . Under the agreement, News Corp. will pay $950 million in cash for the company, which counts Zillow (Z) and others as its competitors.
News Corp is snapping up Move to bolster its REA Group investment. REA, which counts News Corp. as a majority stakeholder, offers real estate listings in Australia. It will now inherit a 20% stake in Move, as well as have operating control of the online real estate platform.