eBay-PayPal breakup set for July

30 Jun 2015

NEW YORK - US online giant eBay said its board approved the planned spinoff of its PayPal online payments unit, which will trade as an independent company 20 July...

The plan calls for the distribution of PayPal stock to eBay shareholders on 17 July, with the financial unit starting to trade under the symbol PYPL on 20 July.

"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.

PayPal over the years has expanded beyond a simple payment mechanism for eBay auctions.

But Icahn and others have argued that PayPal need to change to compete better in the fast-moving online payments segment.

In 2014, PayPal processed $235 billion in payments and handled one billion mobile transactions. It had revenues last year of $8 billion and worked with 10 million merchants worldwide.

Source: AFP

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za