The recent debate about whether eBay should spin PayPal off is fanned by conflicting approaches to increasing company profitability, value to shareholders, and customers. On one side, the activist investor is claiming that PayPal will be more profitable if it is spun off, while on the other side, eBay board members claim that both eBay and PayPal are profitable together than they would be independently. According to the activist, PayPal, which accounts for a big portion of eBay revenue, would be more innovative and be more competitive in the online payment sector if it branched off. In his argument this would lead to higher profits for the shareholders. However, eBay board of directors contend eBay accounts for a third and half of PayPal’s revenue and profits, hence making it a critical part of PayPal.
With the main aim being the profitability of the company, value to the shareholders, and improved customer satisfaction; this research will seek answers on which approach will achieve these goals and whether a combination of the two approaches is workable. The objective of this research is to come up with the best strategy that will improve the company’s share value. It will also seek to collect data that will that will improve the company’s future prospects.
This study will be beneficial to the investor activist since it will provide market data indicating the viability of his approach against that of the board members. Further, the report will indicate whether the board’s view that eBay gives PayPal the data it requires to innovate, accelerates PayPal success, and funds its growth, are supported by market data.This report will also be beneficial to researchers who can use it to improve the discourse.
Example Of Responsive Research Proposal Research Paper
Type of paper: Research Paper
Topic: Stock Market, Activism, Ebay, Information, Stakeholder, Company, Marketing, Investment
Pages: 1
Words: 300
Published: 03/27/2020
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