Sale Pressure Seen at eBay

If its online auction business does not improve, eBay Inc. may face pressure to spin off or sell parts of its PayPal Inc. and its Skype Internet phone service, according to Youssef Squali, an analyst with Jefferies & Co.

Failing to stem the decline in sales at eBay's auction and fixed-price listings unit might force the San Jose company to unlock value in other businesses, he wrote in a research note last week.

"Investors are growing restless," according to Squali, who has a "buy" rating on eBay's shares.

John Donahoe, eBay's chief executive, is overhauling listing fees, providing more protection for buyers and encouraging fixed-price listings to revive sales.

A spokesman for eBay wrote in an e-mail that it plans to "double PayPal and Skype businesses" in the next three years. The company also will overhaul its auction and listings unit, and it expects to increase sales and profits in the next three years, the e-mail said.

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