PayPal updates investors on Form 10 filing, JMP Securities sees nothing surprising

JMP Securities on Friday issued a company update on eBay inc. EBAY following PayPal's updated Form 10 filing. JMP Securities reiterated eBay's market perform rating while a price target is unavailable. Ronald Josey and Ignatius Njoku, analysts at JMP Securities, wrote, "PayPal reaffirmed the timing of the spin to be completed in the second half of 2015 and the filing also included updated details around the operating agreement between eBay and PayPal, incremental public company costs for PayPal, and management updates... Overall, we do not see any major surprises here and we expect additional details closer to the spinoff." The key points of the operating agreement between eBay and Paypal are the following: 1. John Donahoe was appointed as Chairman of PayPal and founder Pierre M. Omidyar as a member of the PayPal board. 2. PayPal agreed to pay eBay referral fees for users and for the use of PayPal credit by eBay consumers and merchants. 3. PayPal disclosed that it expects to incur an incremental $100-$150 million in annual operating expenses associated with traditional public company costs that were previously provided by eBay. 4. eBay increased PayPal penetration rates. eBay inc. is currently trading at $57.59, up 1.02 percent.