Retail

EBay CEO Devin Wenig is stepping down as the company reviews potential sale of assets

Key Points
  • EBay announces that CFO Scott Schenkel will be interim CEO.
  • The e-commerce giant also says its "previously announced operating review is ongoing and the company expects to provide an update this fall."
  • It says its strategic review of its asset portfolio, including StubHub and eBay Classifieds Group, is moving forward.
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Ebay CEO Devin Wenig steps down, Scott Schenkel named interim CEO

EBay announced Wednesday that Devin Wenig is stepping down as president and CEO and the company is moving forward with the potential sale of assets.

"Devin has been a tireless advocate for driving improvement in the business, particularly in leading the Company forward after the PayPal spinoff," Chairman Thomas Tierney said in a statement. "Notwithstanding this progress, given a number of considerations, both Devin and the Board believe that a new CEO is best for the Company at this time."

Scott Schenkel, eBay's senior vice president and chief financial officer since 2015, has been appointed as interim CEO.

"As the Board conducts a search, we will continue to focus on our strategic plan and product initiatives, while also ensuring a great customer experience and a smooth transition," Schenkel said.

Schenkel joined eBay in 2007 as vice president of global financial planning and analysis. He then spent six years as chief financial officer of eBay Marketplace before becoming the CFO of eBay.

Shares of eBay dropped nearly 2% following the news of Wenig's departure.

Wenig addressed his resignation by tweeting, "In the past few weeks it became clear that I was not on the same page as my new Board. Whenever that happens, its best for everyone to turn that page over. It has been an incredible privilege to lead one of the worlds great businesses for the past 8 years."

The e-commerce company also said its "previously announced operating review is ongoing and the company expects to provide an update this fall."

After it announced a strategic portfolio review on March 1, the company was reported to be in the early process of a potential sale of the StubHub ticket exchange company in July.

EBay said its strategic review of its asset portfolio, including StubHub and eBay Classifieds Group, is moving forward with the assistance of Goldman Sachs.

The company has been facing many challenges as competition from other e-commerce giants such as Amazon and Walmart has intensified over the past few years.

However, it shifted its focus to adopting a new payments platform and a promoted listings program. It also worked on simplifying customers' buying experience by launching new pages that produced more intuitive grouped listings and personal recommendations.

As a result, the company reported a quarterly revenue of $2.69 billion and earnings of 68 cents per share, which beat Wall Street estimates in the second quarter that ended June 30.

It also said active buyers grew 4% to 182 million globally in the reported quarter.

In its statement Wednesday, eBay reaffirmed its earnings per share guidance for 2019.