The board of directors of e-commerce giant eBay has approved the planned spinoff of its online payments unit PayPal, which will trade as an independent company from 20 July 2015.
The separation will take place through a pro rata distribution of all of the stock of eBay’s subsidiary PayPal Holdings to eBay shareholders.
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eBay shareholders will receive one share of PayPal common stock for each share of eBay common stock held as of the close of business on 8 July 2015, the record date for the distribution.
The distribution of PayPal common stock is expected to occur on 17 July 2015.
Following the distribution of the shares, PayPal will be listed on the market under the ticker PYPL, while eBay will continue to trade under EBAY.
In 2014, PayPal processed $235bn in payments and managed 1 billion mobile transactions. It generated $8bn in revenue last year and worked with 10 million merchants worldwide.
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By GlobalDataeBay president and CEO John Donahoe said: "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."
