EBay an­nounces July spinoff of PayPal

Los Angeles Times - - HIGHWAY 1 - By James F. Peltz james.peltz@latimes.com

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.

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