EBay Inc/PayPal Conference Call Highlights
EBay Inc's (NASDAQ: EBAY) board approved a plan for a spinoff. This will separate eBay, with revenue of nearly $10 billion, and PayPal, which has more than $7 billion in revenue.
Below are some key highlights from its conference call:
• This transaction creates two industry leaders, each with significant reach and scale.
• Allows us to continue our focus on customers, innovation and execution.
• We'll begin a process of over the next nine months to 12 months a tax-free spin which we anticipate to be completed in the second half of 2015.
• Devin Wenig, who is currently the President of eBay Marketplaces will be leading eBay as CEO upon separation.
• Dan Schulman will be joining us first as President of PayPal and then as CEO of PayPal once separation is completed.
• We've grown revenues from $1.2 billion in 2002, when we first acquired PayPal to $17 billion today.
• PayPal has grown from $100 million company to over $7 billion today.
• PayPal represents 80% of payments on eBay.
• eBay represents a little less than 30% of PayPal's total volume, and as we look forward in three years' time, will represent less than 15% of PayPal's total volume.
• E-commerce and mobile commerce still represent only about 15% of total retail, and eBay is well positioned to capitalize on future growth.
• PayPal today has over 150 million active digital wallets, each with the freedom of funding choice.
• eBay and PayPal will be two powerful industry leaders on the Internet with very compelling financial profiles.
• The eBay business, an $85 billion platform growing 13%, generating $9.9 billion in revenue, up 10% with strong segment margins and a significant user base and strong free cash flows.
• The new eBay will offer investors a rare combination of growth, high margins and predictable cash flows.
• The PayPal business generates over $200 billion of payment volume, growing 26% with accelerating growth off of eBay, generating $7.2 billion of revenue, up 19% with strong segment margins, and with over 150 million active global users.
• eBay's balance sheet and strong cash flows have been a source of low cost funding for PayPal's growing loan portfolio.
• PayPal offers investors the leading online payments company with accelerating growth and significant scale.
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