Investing.com -- PayPal Holdings (NASDAQ: PYPL) shares rose 4% Wednesday afternoon after CNBC reported the company is separating Venmo into its own standalone business unit as part of a broader reorganization.

The restructuring creates three distinct segments within PayPal, with Venmo operating independently for the first time, according to the report. The move comes as PayPal faces takeover interest from potential buyers including Stripe, with Venmo considered the company's most valuable and most acquirable asset.

CEO Enrique Lores told managers this week about the reorganization, which will make it easier to track Venmo's progress or potentially sell the business to another company, CNBC reported. PayPal is looking to recruit a digital banking executive to run the new Venmo segment.

The other two segments will include a PayPal-branded business for merchants and consumers, and a payment services unit that includes its Braintree unit and crypto operations.

Two senior executives are departing amid the changes, according to the report. Earlier this year, PayPal weighed a broad round of layoffs that was put on hold when Lores stepped in as CEO.

The restructuring marks a significant shift in how PayPal manages its operations, separating its peer-to-peer payment platform from its traditional payment processing businesses.