After planned split, eBay and PayPal promise to stay friends


Fortune

Ahead of their imminent corporate split, eBay and PayPal have signed an agreement that prohibits them from competing against each in their core businesses other after they’ve parted ways.

The agreement, made in a regulatory filing Thursday, is intended to keep the two independent companies healthy while on their own.

Most notably, they will remain in their respective lines of business. PayPal is forbidden from creating its own marketplace for physical goods, while eBay has promised to steer clear of building a payments system. One caveat is if PayPal is acquired by an eBay e-commerce competitor. In such a case, eBay would be able to dive into payments after giving PayPal 15 to 21 months advanced notice.

The companies joined forces in 2002, when online marketplace eBay [fortune-stock symbol=”EBAY”] acquired PayPal in what ultimately became one of the most successful mergers in Silicon Valley history. PayPal blossomed under eBay and…

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