PayPal and eBay will become two separate independent, publicly traded companies in 2015, according to an announcement from eBay. The move comes months after Carl Icahn, an activist hedge fund manager, suggested the spinoff happen to generate more value for shareholders. 

John Donahue, eBay's current CEO, told the New York Times in an interview the company is following Icahn's suggestion but that eBay arrived at its decision using a "deliberate process" and did not bow to outside pressure.

"EBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets," Donahoe said in a blog post. "As independent companies, eBay and PayPal will enjoy added flexibility to pursue new market and partnership opportunities. And we are confident following a thorough assessment of the relationships between eBay and PayPal that operating agreements can maintain synergies going forward. Our board and management team believe that putting eBay and PayPal on independent paths in 2015 is best for each business and will create additional value for our shareholders."

EBay announced Donahoe will leave his role once the split is complete, but he will serve on one or both boards of both companies, according to the press release.

Daniel Schulman, formerly of American Express, joined PayPal Tuesday as its president and will become its CEO when the split is complete.