eBay-PayPal breakup set for July

AFP, NEW YORK: US online giant eBay said on Friday its board approved the planned spinoff of its PayPal online payments unit, which will trade as an independent company July 20.
The plan calls for the distribution of PayPal stock to eBay shareholders on July 17, with the financial unit starting to trade under the symbol PYPL on July 20.
“eBay and PayPal are two great, special businesses,” said John Donahoe, president and chief executive of eBay.
“As separate, independent companies, eBay, led by Devin Wenig, and PayPal, led by Dan Schulman, will each have a sharper focus and greater flexibility to pursue future success in their respective global commerce and payments markets.”
The plan, announced last year, came after months of pressure from activist investor Carl Icahn, who had assailed eBay for poor management and claimed that keeping eBay tied with PayPal depressed the value of both units.
eBay acquired PayPal in 2002 for roughly $1.5 billion in shares, integrating the payment service that had already been widely used for online auctions.

eBay-PayPal breakup set for July

AFP, NEW YORK: US online giant eBay said on Friday its board approved the planned spinoff of its PayPal online payments unit, which will trade as an independent company July 20. The plan calls for the distribution of PayPal stock to eBay shareholders on July 17, with the financial unit starting to trade under the symbol PYPL on July 20. eBay and PayPal are two great, special businesses, said John Donahoe, president and chief executive of eBay. As separate, independent companies, eBay, led by Devin Wenig, and PayPal, led by Dan Schulman, will each have a sharper focus and greater flexibility to pursue future success in their respective global commerce and payments markets. The plan, announced last year, came after months of pressure from activist investor Carl Icahn, who had assailed eBay for poor management and claimed that keeping eBay tied with PayPal depressed the value of both units. eBay acquired PayPal in 2002 for roughly $1.5 billion in shares, integrating the payment service that had already been widely used for online auctions.