section_path: Business career/X.com and PayPal
section_name: X.com and PayPal
paragraph_text: X.com and PayPal
  
  In 1999, Musk co-founded X.com, an online financial services and e-mail payment company. The startup was one of the first federally insured online banks, and, in its initial months of operation, over 200,000 customers joined the service. The company's investors regarded Musk as inexperienced and replaced him with Intuit CEO Bill Harris by the end of the year. The following year, X.com merged with online bank Confinity to avoid competition. Founded by Max Levchin and Peter Thiel, Confinity had its own money-transfer service, PayPal, which was more popular than X.com's service.
  
  Within the merged company, Musk returned as CEO. Musk's preference for Microsoft software over Unix created a rift in the company and caused Thiel to resign. Due to resulting technological issues and lack of a cohesive business model, the board ousted Musk and replaced him with Thiel in 2000. Under Thiel, the company focused on the PayPal service and was renamed PayPal in 2001. In 2002, PayPal was acquired by eBay for $1.5 billion in stock, of which Musk—the largest shareholder with 11.72% of shares—received $175.8 million. In 2017, Musk purchased the domain X.com from PayPal for an undisclosed amount, stating that it had sentimental value.
  
  In 1999, Musk co-founded X.com, an online financial services and e-mail payment company. The startup was one of the first federally insured online banks, and, in its initial months of operation, over 200,000 customers joined the service. The company's investors regarded Musk as inexperienced and replaced him with Intuit CEO Bill Harris by the end of the year. The following year, X.com merged with online bank Confinity to avoid competition. Founded by Max Levchin and Peter Thiel, Confinity had its own money-transfer service, PayPal, which was more popular than X.com's service.
  
  Within the merged company, Musk returned as CEO. Musk's preference for Microsoft software over Unix created a rift in the company and caused Thiel to resign. Due to resulting technological issues and lack of a cohesive business model, the board ousted Musk and replaced him with Thiel in 2000. Under Thiel, the company focused on the PayPal service and was renamed PayPal in 2001. In 2002, PayPal was acquired by eBay for $1.5 billion in stock, of which Musk—the largest shareholder with 11.72% of shares—received $175.8 million. In 2017, Musk purchased the domain X.com from PayPal for an undisclosed amount, stating that it had sentimental value.