EBay Not Spinning Off PayPal: Sources

Monday, 13 Aug 2012 | 5:32 PM ET
eBay headquarters in San Jose, California.
Photo: Coolcaesar
eBay headquarters in San Jose, California.

EBay's stock got a pop in afternoon trading amid rumors that the online marketplace was planning to spin off its payment service PayPal.

EBay declined to comment on the matter but sources close to the matter said the company has no immediate plans to spin off PayPal.

However, trader Jon Najarian, co-founder of OptionMonster.com, said on CNBC's Fast Money that investors should still keep an eye on eBay.

The Ryan Factor & the Markets
Pluses & minuses of Wisconsin's Paul Ryan being Mitt Romney's running mate, with Lewis Alexander, Nomura and the Fast Money traders. Also, eBay surged in this afternoon's trading session, with CNBC's Jon Fortt.

"Perhaps this was some sort of trial balloon that they tossed up there to see how people would react," Najarian said.

PayPal has been undergoing a reorganization under the company's new president, David Marcus.

Share of eBay traded about three percent higher in afternoon trading Monday. Click here for the latest after-hours quote.

email: tech@cnbc.com

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.