From CNET: As eBay gets ready to split off PayPal, it's narrowing its focus right on its marketplace.
The e-commerce company said Thursday it agreed to sell off its eBay Enterprise business -- which helps run online retail sites, including those of Ikea, Timberland and iRobot -- for $925 million. The buyer is a consortium that includes private-equity firms Permira and Sterling Partners.
The deal lets eBay shed one last distraction from its core business as it prepares to separate from PayPal on Friday. Last month, eBay also sold back a stake in Craigslist and agreed to end litigation with the online classifieds company. eBay in January said it would seek to sell or spin off eBay Enterprise because it didn't fit with the rest of its business.
eBay's narrower goals were in stark contrast to PayPal's, the company's fast-growing digital payments unit, which is planning on rapidly expanding in online and mobile payments. After Friday's split, PayPal is expected to become the larger company by market valuation, following huge growth since its $1.5 billion acquisition by eBay 10 years ago. PayPal will face the big challenge of increased competition in its field, as Apple and Google move into its space. Meanwhile, eBay will be more focused on attempting a turnaround and goosing slow sales, as it continues to face tough competition from Amazon and other online retailers.
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