![]() The company expects to complete the transaction as a tax-free spin-off in the second half of 2015, subject to market, regulatory and certain other conditions.ĮBay Inc. But beyond 2015, eBay and PayPal will each benefit more and create greater value from the strategic focus, speed, flexibility and agility that come with being independent publicly traded companies. eBay is a leading global commerce platform that has benefited from PayPal, and PayPal is a strong, rapidly growing global payments leader because it has been part of eBay. This is the best path for delivering sustainable shareholder value.Arm’s length operating agreements can formalize the existing relationships between the two companies and capture ongoing synergies. The benefits of the existing relationships between eBay and PayPal will naturally decline over time and can be optimized in arm’s length operating agreements between the two entities.The pace of industry change and innovation in commerce and payments requires maximum flexibility to stay competitive and drive global leadership. ![]() A changing competitive landscape creates enormous opportunities for eBay and PayPal separation will create sharper strategic focus and better position each business to capitalize on those growth opportunities as independent companies.In its recently completed review, the board concluded: As part of such assessments, the board regularly explores the following questions: Will separation make eBay and PayPal more competitive? Will separation be possible without distracting innovation and execution? And, will separation create sustainable value for shareholders over time? Our board and management team believe that putting eBay and PayPal on independent paths in 2015 is best for each business and will create additional value for our shareholders.”Īs the company has previously stated, eBay’s board of directors has a practice of regularly reviewing the company’s growth strategies and structure, and assessing all alternatives. And we are confident following a thorough assessment of the relationships between eBay and PayPal that operating agreements can maintain synergies going forward. “As independent companies, eBay and PayPal will enjoy added flexibility to pursue new market and partnership opportunities. “eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets,” Donahoe continued. The industry landscape is changing, and each business faces different competitive opportunities and challenges. However, a thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively. “For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value. “eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay Inc. Creating two standalone businesses best positions eBay and PayPal to capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape, and is the best path for creating sustainable shareholder value, the company said. EBay Inc. today said its Board of Directors, following a strategic review of the company’s growth strategies and structure, has approved a plan to separate the company’s eBay and PayPal businesses into independent publicly traded companies in 2015, subject to customary conditions.
0 Comments
Leave a Reply. |