PayPal, the online payment business of eBay Inc (NASDAQ: EBAY) will begin trading on NASDAQ on July 20 under the symbol “PYPL” after the spinoff from its parent company.
The board of directors of eBay approved the completion of the separation of its businesses into independent publicly traded companies on July 17.
Shareholders will receive one share of PayPal common stock for every eBay common stock they own as of the close of business on July 8. PayPal will not issue fractional shares of its common stock in the distribution.
eBay will continue to trade on NASDAQ under the symbol “EBAY” following the separation of PayPal as an independent publicly traded company.
PayPal expects trading its shares in the “when issued” market on or about July 6 until the distribution date. The shares will trade under the symbol PyPL.wi. The “regular way” trading of its common stock on NASDAQ is expected to start on July 20.
eBay and PayPal leadership
As separate and independent companies, eBay and PayPal will be led by Devin Wenig and Dan Schulman, respectively.
Under the leadership of Wenig, eBay is focused on engaging its customers to discover unique value and selection and creating an exceptional product and brand experiences that makes shopping and selling simple. The company is also focused on delivering a robust, stable and secure shopping and selling destination.
Under Schulman, PayPal is focused on expanding its reach and shaping the future of the payments industry and increasing merchant and consumer engagement with relevant, trusted products and services.
“I am confident that eBay and PayPal each have the right leadership team, strategy, structure and operational discipline to create sustainable, long-term value for stockholders and deliver great opportunities and experiences for customers worldwide,” said John Donahoe, president and CEO of eBay.
Donahoe also believes that eBay and PayPal “will each have a sharper focus and greater flexibility to pursue future success in their respective global commerce and payments markets.”
eBay and PayPal are well positioned to capitalize on growth opportunities
Donahoe emphasized that eBay and PayPal are well positioned to capitalize on their respective growth opportunities. The companies have an operating agreement focused on preserving the benefits of their existing relationship and ensuring that the separation is seamless for their customers.
As an independent company, PayPal is free to establish partnerships with retailers and other financial firms. Last year, PayPal processed $235 billion in payment volume across 165 million active customer accounts and handled one billion mobile transactions. It supports 10 million merchants worldwide. Last year, the company generated $8 billion in revenue.
On the other hand, eBay is a global leader in e-commerce with approximately 800 million live listings at any given time. The company connects 25 million active sellers and 157 million active buyers worldwide. eBay generated revenue of $8.8 billion last year.