Strategic Spinoff - Research Report on PayPal Holdings
NEW YORK, September 21, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on PayPal Holdings, Inc., (NYSE: PYPL). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/PYPL.pdf
Highlights from our PYPL Report include:
- PayPal Separates from eBay - On July 20, 2015, PayPal Holdings, Inc. announced completion of its separation from eBay Inc. and its new status as an independent public company trading on the Nasdaq Stock Market under the ticker symbol "PYPL." The release informed that PayPal was listed on the Nasdaq under the same ticker symbol "PYPL" before it was acquired by eBay Inc. in 2002 for $1.5 billion. Further, the Company stated that under the terms of the separation, on July 17, 2015, stockholders who held eBay common stock at the close of business on July 8, 2015 received a distribution of one PayPal common share for every one share of eBay common stock held as of the Record Date. No fractional shares of PayPal were distributed.
- Road Ahead - As per a release by Zacks on July 21, 2015, the separation has opened an opportunity for both companies to increase focus on their core capabilities and operate with greater flexibility for success in their respective markets. As per Zacks, with the separation, PayPal will be able to concentrate on digital payments while positioning itself as a "full-service" payments associate for consumers and merchants, managing mobile transactions, credit purchases and customer loyalty rewards programs. Further, the release informed that PayPal is gearing up to sustain itself in the fast growing digital payments market. The Company's recent acquisition of Xoom Corporation, a service for international money transfers, will enable it to sell international transfers to its U.S. customer base of nearly 68 million, by cross-selling Xoom's services. In addition, the release mentioned that eBay and PayPal will operate under a five-year contract to assure a dependable source of revenues for the latter after separation.
- Management's View - Commenting on the spinoff, Dan Schulman, President and Chief Executive Officer of PayPal, said "As the world's open, digital payments platform and most trusted and popular digital wallet, we are excited to celebrate our listing day and embark on our next chapter." He added "Mobile technology is transforming payments, making it easier, safer and more affordable for people to move and manage their money than ever before. As an independent company, we see a tremendous opportunity for PayPal to expand our role as a champion for consumers and partner to merchants, and to help shape the industry as money becomes digital at an increasingly rapid pace."
To find out how this influences our rating on PayPal Holdings, Inc., read the full report in its entirety here: http://www.aciassociation.com/PYPL.pdf
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