Okay, maybe that's a little strong. But, it takes a lot to get your attention in August. The truth is Ebay really is looking to something besides EBay as its real future cash cow: PayPal.
"PayPal is a business that will be bigger than eBay,"
- John Donahoe, EBay CEO at the recent Fortune Brainstorm Conference
Even Donahoe admits its going to take about another five years or so for that to happen. Right now, PayPal accounts for about a third of eBay's profits.
Here's why Donahoe thinks the percentage of those revenue streams will one day flip.
1. Taking a page from the success of the iPhone Application store, EBay has recently opened up PayPal to third party developers. Get ready for PayPal mash-ups on a smartphone near you.
2. Online sales still only makes up about 5% of all sales. Clearly, there is room for huge, huge growth.
3. PayPal is way ahead of everyone else in the online payment game. Facebook is making a lot of noise about its own payment method. However, a lot of noise doesn't compensate for a ten year jump in establishing a beach head in online sales.
Now what is he going to do about those outrageously priced fees off the top that kill small businesses? I guess he has five years to figure that one out.
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