EBay reliance on PayPal for growth lowers chances of spinoff

EBay Inc is fighting the proposal by activist investor Carl Icahn to spin off PayPal because it views the payments service as crucial to long-term growth prospects of the e-commerce company. The marketplaces business, eBay's biggest, is growing at a slower rate than both PayPal and eBay rival Amazon.com Inc. PayPal, estimated to be worth as much as $40 billion on its own, helps bolster eBay's share price. PayPal is considered a leader in U.S. mobile payments, which Forrester Research projects will triple in volume to $90 billion by 2017.

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