Six years ago PayPal was split off from eBay as the parent company said the two companies were in different businesses and could “focus” better if they were separate entities. Well, guess what? This week reports surfaced that PayPal wanted to buy Pinterest because of its burgeoning e-commerce business. Still unconfirmed so far, but you can bet if the deal happens somebody will use the word “synergy” as the reason for joining the two companies. These corporate yahoos who wheel and deal, buying and selling only to benefit investors, consultants, lawyers and their own compensation are the reason we’re seeing Saks and Macy’s being pushed to split their e-commerce operations apart from their physical retailing. It’s good for them…but bad for the business ultimately. Not only bad but outright Stupid. If PayPal wanted to be in the online retailing business why didn’t it just stay with eBay?
Further thoughts on all of this in my new Forbes.com analysis: https://www.forbes.com/sites/warrenshoulberg/2021/10/21/would-pinterest-deal-reverse-paypals-split-from-ebay-6-years-ago/?sh=5c817b02e0a9
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