PayPal head quashes spinoff rumours

PayPal president Scott Thompson is denying rumours that the firm will be spun off by parent company eBay. Talking to BusinessWeek, Thompson commented ?I think we’re going to be part of the eBay family for a long time to come.? Analysts are speculating that eBay would sell PayPal to a group of private equity firms while keeping a stake in the company. Thompson says his firm has ?not talked about that?. He argues that it is important to keep eBay as a parent company due to its substantial cash reserves. eBay plans to spin off voice-over-IP service Skype via an IPO next year.