|Fri June 26 2015 22:39:19|
eBay Break with PayPal to Be Complete in Three Weeks
By: Ina Steiner
eBay announced today that its split with PayPal will be complete 3 weeks from today on July 17th. The day before the split becomes final, eBay will release second-quarter earnings - the last as a united company.
eBay issued a press release
today explaining the details with regard to eBay and PayPal stock. Interestingly the company said the distribution remains subject to satisfaction of certain conditions, including regulatory approval from the European Central Bank and others.
eBay CEO John Donahoe issued a statement
on the company blog - also published on LinkedIn - about today's news. "Going forward, eBay and PayPal will each have a sharper focus and greater flexibility to pursue future success in their respective markets."
He also said eBay and PayPal were well positioned to capitalize on their respective growth opportunities. "At the same time, we have put in place an operating agreement focused on preserving the benefits of their existing relationship and ensuring that separation is seamless for customers of both companies."
Donahoe will be stepping down as CEO of eBay as soon as the split is finalized, and he will become Chairman of the Board for PayPal. He will not sit on eBay's board after the split - the new eBay Board will be chaired by current eBay Inc. director Thomas Tierney. See more information about the new boards here
Devin Wenig will take over as CEO of the new, smaller eBay consisting of Marketplaces, and Dan Schulman will take over as CEO of PayPal. eBay has said it would sell eBay Enterprise prior to the split, but it didn't mention it in today's announcement.