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PayPal to split from eBay next year

US online auction giant eBay on Tuesday agreed to shareholders’ requests for a split, making its highly profitable PayPal brand into an independent company starting next year.

Current eBay shareholders will receive stock in the future PayPal in proportion to their current holdings, the company said in a statement.

The split will give shareholders “more targeted investment opportunities” and will increase the value of the company over the long term, the statement said.

Rumours of a split had been circulating since August.

eBay said it had made the decision after carefully examining several strategic options available and planned to complete the separation in the second half of next year.

PayPal accounted for 41 per cent of eBay’s revenues last year and has more than 152 million active users.

Source: AFP

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