The real reason behind Facebook's PayPal hire

Facebook hires PayPal President
Facebook hires PayPal President

In case you missed it, Facebook added a new friend to its payroll and everyone from Silicon Valley to Wall Street is buzzing about it.

PayPal President David Marcus will now be head of Facebook's messaging products. However, value investor Bill Smead told CNBC he thinks Mark Zuckerberg has very different intentions for the hire.

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"If Facebook hires the guy who was just running it, what does it tell you about Facebook's intentions? He's coming here to do messaging. Really? Are they going to generate a lot of revenue off that? Or is Facebook going to be one of the three companies trying to buy eBay and they just wanted to have the guy running it sitting in the house," the CEO and chief investment officer of Smead Capital said on "Squawk Box."

David Marcus
Simon Dawson | Bloomberg | Getty Images

Many major tech companies covet the PayPal business because it's dominating the payment system, Smead said later Tuesday on "Closing Bell." Even Google made a $350 million-$400 million attempt to make a PayPal competitor in Google Wallet, he noted.

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However, Ari Zoldan, technology analyst at Quantum Networks said buying PayPal doesn't make sense for Facebook.

"Facebook is not acquiring more companies. There's so much more that the company can do, and do it well," he said.

His explanation for the hire?

"It's strictly about finding quality talent. I don't think an acquisition is on the horizon, short term or long term," Zoldan said.

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—By CNBC's Crystal Lau. Follow her on Twitter at @LatsyrcLau