EBay announces July spinoff of PayPal
EBay Inc. said Friday that the previously announced spinoff of its PayPal Holdings Inc. online payment unit is scheduled for July17.
That’s the day EBay shareholders would receive one share of PayPal stock for each of their shares in the online-auction giant. The distribution would be available to EBay holders of record July 8.
PayPal then is expected to start trading as an independent company July 20 under the symbol PYPL on Nasdaq.
After long resisting a separation, EBay announced Sept. 30 that it would spin off PayPal amid heavy pressure from billionaire Carl Icahn and other activist investors.
The activists argued that the combined value of the two stocks would be worth more than EBay as a standalone stock.
“It’s almost a ‘no brainer’ that these companies should be separated to increase the value of these great assets,” Icahn said after the spinoff was announced.
Icahn still has a 3.8% stake in EBay, or 46.3 million shares worth about $2.9 billion, according to FactSet Research.
EBay’s stock closed Friday at $61.04ashare, down56 cents on the day, and the company has a total stock market value of $74.8 billion.
EBay’s revenue last year was $8.8 billion. PayPal’s revenue was $8 billion in 2014.