PayPal plans buying spree after the divorce from eBay
In an interview with the FT, PayPal CEO Dan Schulman has revealed that PayPal will be on the look out for acquisitions after the divorce from eBay scheduled for 17th July.
Apparently, under the terms of the split, the independent PayPal will have $6bn of wedge to splash about. Schulman says: “The balance sheet affords us the opportunity to look opportunistically where it makes sense to acquire. I think there is a tremendous opportunity to look across the world.”
On Monday pricing began on PayPal’s shares. As it stands, eBay Inc. shareholders will receive one independent eBay share and one PayPal share for each that they currently hold. According to analysts, the newly independent PayPal could be worth about $40bn. That’s roughly 2/3 of eBay Inc’s current valuation.
That PayPal is potentially so valuable is no surprise. It has huge potential and has also had a great year. In 2014, revenues increased by 19% and there was a user increase of 13% and a great deal of that was off-eBay.
In the dating scene, post divorce, PayPal certainly isn’t going to want for suitors.