Investing.com -- eBay Inc (NASDAQ:EBAY) announced on Friday that its Board of Directors approved a highly-anticipated spin-off of PayPal, Inc.
Shareholders of eBay as of July 8 will receive one share of common stock in Pay Pal for each share of eBay stock owned through a pro rata distribution. The distribution remains subject to conditions described in Form 10 regulatory filings, including an approval from the European Central Bank, eBay said in a statement.
PayPal will be listed on the NASDAQ under the ticker PYPL, while eBay will continue to be traded on the NASDAQ under the ticker EBAY.
In mid-May, PayPal announced the composition of its board while filing a second amendment to Form 10. Current eBay CEO John Donahoe will serve as PayPal's Chairman of the Board following the separation. Devin Wenig will serve as CEO designee at eBay, while Dan Schulman will occupy a similar post with PayPal.
“eBay and PayPal are two great, special businesses,” eBay CEO John Donahoe said in a statement. “As separate, independent companies, eBay, led by Devin, and PayPal, led by Dan, will each have a sharper focus and greater flexibility to pursue future success in their respective global commerce and payments markets. 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.”
eBay increased revenues by 4% in the first quarter to $4.5 billion, bolstered by a 14% spike in its PayPal subsidiary.
Goldman, Sachs & Co. and Allen & Company LLC are serving as financial advisors for the divestiture.