Online auction giant eBay today announced that its board of directors has approved the completion of the previously announced separation of eBay and PayPal into independent publicly traded companies. The separation will occur through a pro rata distribution of all of the stock of eBay's subsidiary PayPal Holdings to eBay stockholders. The stock distribution still awaits necessary regulatory approvals, both in the US and overseas.
In 2014, PayPal processed $235 billion in payment volume across 165 million active customer accounts, and handled one billion mobile transactions. PayPal supports 10 million merchants worldwide. Revenue in 2014 was $8 billion. At any given time, approximately 800 million live listings can be shopped on eBay, which connects 25 million active sellers and 157 million active buyers worldwide. About 3 out of every 4 items sold on eBay are new, and 80 percent of merchandise on eBay is sold at fixed price. eBay's revenue in 2014 was $8.8 billion.
In the distribution, eBay Inc. stockholders will receive one share of PayPal common stock for each share of eBay Inc. common stock held as of the close of business on July 8, 2015, the record date for the distribution. Immediately following the distribution, PayPal will be an independent, publicly traded company and will be listed on the NASDAQ Stock Market under the ticker "PYPL." eBay will continue to trade on the NASDAQ Stock Market under the ticker "EBAY."
PayPal anticipates that "when-issued" trading will begin on or about July 6, 2015, and will continue up to and through the distribution date. "Regular-way" trading in PayPal's common stock is expected to begin on July 20, 2015, the first trading day following the completion of the separation. No action is required by eBay's stockholders in order to receive shares of PayPal common stock in the distribution.
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