PayPal Approved to Go Solo under Stock Ticker ‘PYPL’ (June 29, 2015)
eBay’s spinoff of PayPal has reached two key milestones with board approval and an announcement that PayPal will begin trading its own stock next month on NASDAQ under the stock ticker symbol “PYPL.” The planned split will give both companies greater flexibility to pursue new business in their respective arenas of global e-commerce and payments, said John Donahoe, eBay president and CEO. Dan Schulman, PayPal’s president, will become CEO of the newly independent company when the split is finalized, eBay said.
PayPal and eBay will remain interdependent for five years after the split, based on terms of an agreement released in April. During this period eBay has agreed not to reduce the volume of transactions it routes to PayPal, and eBay will continue to pay a transaction rate lower than what PayPal charges other merchants. Analysts expect PayPal to further broaden its products and services when it goes solo. PayPal tallied $8 billion in revenue in 2014, and processed $235 billion in payment volume for 165 million active customer accounts, while handling 1 billion mobile transactions, eBay said. PayPal supports 10 million merchants globally.
The stock distribution plan for the two companies’ split calls for eBay stockholders to receive one share of PayPal common stock for each share of eBay Inc. common stock held at the close of business on July 8, 2015. PayPal’s own stock will begin trading July 20, eBay said.