PayPal to separate from eBay

PayPal is splitting from eBay and will become a separate and publicly traded company next year.

The separation is expected to occur in the second half of 2015.

The board of eBay decided the separation is the best path for growth and shareholder value creation for each business.

Dan Schulman, the president of the enterprise growth group at American Express, will be the new president at PayPal, effective immediately.

The 56-year-old will become chief executive after the separation takes place.