EBay on Thursday laid out new details about its plan to spin off its online payments unit, PayPal. In short, the two will be tied at the hip for at least five years, according to a Dow Jones report.
The online auctioneer agreed to route about 80 percent of its gross merchandise sales through PayPal for the next five years, according to The Wall Street Journal. It will have to pay restitution if it breaches that agreement.
In addition, PayPal has agreed to pay eBay a commission if its percentage of sales on the marketplace rise above that mark, the report said.
The agreement also bars eBay from creating a payment system and PayPal from creating a marketplace.