John Donahoe '82, a member of the Dartmouth Board of Trustees, will assume the position of chief executive officer of eBay, Inc., when current C.E.O. Meg Whitman steps down from the post on March 31, the company announced yesterday. Donahoe, who began working for eBay in 2004, currently serves as the president of the company's marketplaces division, which brings in nearly 70 percent of eBay's total revenues.
News of Donahoe's promotion accompanies the online auction company's announcement that the company saw robust fourth-quarter earnings despite a disappointing performance in 2007. The company finished the year with a net income of $611 million and a revenue of $2.18 billion, 27 percent higher than 2006's revenue, according to The New York Times.
The company's fourth-quarter rebound is largely attributed to advances in its marketplaces division. In an effort to create "tailored shopping experiences," Donahoe has attempted to keep eBay's main site devoted to selling used items at low prices while promoting additional sites for the distribution of new goods.
Additionally, eBay's fourth-quarter earnings can be attributed to the growing popularity of StubHub, where web users can buy and sell tickets to sports games, concerts and Broadway shows, and Skype, an internet calling service that eBay bought for $2.6 billion in 2005.
Last February, The New York Times business section ran a feature on Donahoe, describing him as Whitman's "likely successor," despite Whitman's assertion at that time that she was not planning to retire in the near future. The article highlighted Donahoe's strong work ethic and energetic style.
"[Donahoe] understands our community and is committed to continuing Meg's legacy," said eBay founder Pierre Omidyar told The New York Times yesterday. "The board and I look forward to supporting John as he takes eBay into the future."
Before joining eBay, Donahoe was the worldwide managing director of Bain & Company, a Boston-based consulting firm where he worked more than two decades.
"[Mr. Donahoe has] an uncanny ability to connect with everyone from receptionists to chief executives," Thomas Tierney, eBay director and fellow Bain alumnus, told The New York Times last year.
While a student at Dartmouth, Donahoe majored in economics and graduated Phi Beta Kappa and magna cum laude. He went on to earn an M.B.A from Stanford University. He and wife Eileen Chamberlain '81 have four children and reside in San Jose, California. Donahoe was appointed to the Board of Trustees in 2003 and has a son at the College, Thomas Donahoe '09.
The Dartmouth was unable to reach Donahoe as of press time.
When Donahoe assumes the position of C.E.O. of eBay in April, Rajiv Dutta, the current president of the company's PayPal division, will become the head of the marketplaces division, Forbes reported.
