PayPal is shedding eBay and the two companies will no longer be connected after eBay's board decided to execute the split, which will occur sometime in late 2015.

eBay said that the split will help growth for both companies and will be better for shareholders. PayPal will then become a publicly traded company in 2015 as well.

The shakeup also includes some new CEOs. For eBay, the new CEO will be the company's current "eBay Marketplaces" Devin Wenig. For PayPal, former American Express exec Dan Schulman will become the new company's CEO.

eBay wants to focus on online commerce while PayPal wants to focus on online payments. It makes sense that these two companies separate themselves.

PayPal now says they are processing one out of every six dollars spent online. The payment processing company is available in 203 markets worldwide and in 26 different currencies.

eBay will be able to better concentrate on its online selling markets and shopping experiences. With pressure from Amazon, Apple, Google and others, eBay is not growing at the pace that PayPal is.

On the news Tuesday, eBay shares leaped by 11 percent before settling down and closing the day at $56.63, after closing Monday at $52.66. Wednesday shares are slightly lower at about $55.50 in late-day trading.

The PayPal initial public offering will be an interesting one. How much is the company worth and what price per share should they price it at? Those are the questions PayPal and its financial representation must answer. But, they have probably at least 9 months to do it.

Finally, PayPal and eBay will still work together. You will still be able to use PayPal for your eBay transactions -- that will not change -- just the organizational changes that most eBayers will not even notice will change.

What do you think about this break-up? Can PayPal and eBay compete with giants like Apple and Amazon? Leave us a comment below and let us know what you think.