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| John Donahoe of eBay |
PayPal and eBay EBAY -1.04% are officially breaking up and will start trading as individual companies next month.
On Friday, eBay’s board of directors approved the completion of PayPal’s separation from the online retailer. After July 17, PayPal and eBay will function as two individual, publicly traded companies. The first day of regular trading for the duo as distinct companies is expected to be July 20, according to a company press release.
John Donahoe, president and CEO of eBay, said that the split will allow PayPal and eBay to “have a sharper focus and greater flexibility to pursue future success in their respective global commerce an payments markets.”
After the official split, eBay stockholders will receive one share of PayPal common stock for each share of eBay stock they held before July 8. Common stock in PayPal will be distributed on July 17. PayPal will be listed on the market under the ticker “PYPL,” while eBay will continue to trade under “EBAY.”
“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,” Donahoe added.
Both companies posted strong results in 2014. Last year, eBay generated $8.8 billion in revenue, while PayPal trailed the online retailer with $8 billion in revenue in 2014. Dan Schulman will continue to lead PayPal as its chief executive.
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