The news of former President of PayPal Scott Thompson, leaving his position with eBay to work as Yahoo!’s CEO could not have come at a worse time. Thompson’s sudden move literally “shocked,” eBay’s CEO John Donahoe and the company itself. Although Donahoe had know about Thompson’s talks with Yahoo!, he was not aware of the new hire or the extremely quick transition between the companies.
Thompson left without one look back, which has caused some PayPal users uncertainty. In recent interviews, Thompson did not mention his plans for changing companies and always seemed very rooted in the future for PayPal. Unfortunately Thompson is leaving PayPal at a very vulnerable time and is potentially delivering a momentous blow to eBay in the process.
The PayPal division is currently planning on releasing the PayPal Wallet, a competitor to the Google Wallet within the year. This will potentially provide PayPal with the opportunity to expand the division into physical payments, making PayPal’s potential market bigger than before. But although this sounds positive and fantastic, it is hard to move forward with a project this large when the leader has just recently jumped ship.
On top of all that, PayPal has struggled to retain its talent within the company and already lost two executives to Google, making Thompson’s departure an even bigger blow to their reputation. But PayPal and eBay are staying positive and trying to look past this minor bump in the road by not missing a beat. They hope to continue in the direction they are going and keep moving forward.