eBay Names CEO From Its Own Ranks

Donahoe set to take over as auction site predicts weak growth
By Nick McMaster,  Newser Staff
Posted Jan 23, 2008 6:12 PM CST
EBay CEO Meg Whitman talks with eBay's John Donahoe as they arrive for the annual Allen and Co.'s media conference Wedensday, July 11, 2007, in Sun Valley, Idaho. (AP Photo/Douglas C. Pizac)   (Associated Press)
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(Newser) – EBay today named John Donahoe to replace Meg Whitman, who will retire in March, as CEO, the Wall Street Journal reports. Donahoe’s ascension from president of the firm's auction business comes as the company is attempting to transform that aspect of its operations, which provides two-thirds of eBay’s annual revenue of $6 billion—but has been growing more slowly in recent years.

In leaving, Whitman is keeping true her belief that CEOs should turn over every 10 years in order to refresh a firm’s viewpoint. The company reported its profit increased by 53% to $531 million in the last quarter of 2007 but does not expect to do well this quarter, citing competition from Amazon.com and a possible slowdown in consumer spending.