PayPal and eBay Separation Will Be Complete in July

The two will be splitting from each other on July 17. Last week, eBay’s board of directors approved the prerequisites that would allow both parties to function separately. The businesses will become independent and publicly traded companies after the controversial spinoff.

Before the official separation, there will be a reallocation of shares for those who hold ownership of stocks on July 8. Shareholders will receive one PayPal share for every eBay share that is held on July 17. Afterwards, PayPal will start trading under the ticker symbol PYPL on July 20.

“As separate, independent companies, eBay, led by Devin Wenig, and PayPal, led by Dan Schulman, will each have a sharper focus and greater flexibility to pursue future success in their respective global commerce and payments markets,” said John Donahoe, President and CEO of eBay Inc.

“I am confident that eBay and PayPal each have the right leadership team, strategy, structure and operational discipline to create sustainable, long-term value for stockholders and deliver great opportunities and experiences for customers worldwide.”

Many expect the split to have opposite effects on the tech brands.

During a quarterly earnings report in April, eBay reported weak figures. Its sales from a number of popular categories such as antique vases, used cars, and outlet clothing fell four percent.

The company’s poor performance in the crowded e-commerce sector recently sprouted an acquisition rumor with Alibaba.

On the other hand, PayPal’s quarterly numbers appear to be strong and healthy. The business grew 14 percent in revenue to $2.1 billion. In 2014, the payments giant processed over one billion transactions amounting to $235 billion.

Behind closed doors, Donahue confirmed that the duo’s relationship hit several roadblocks since eBay acquired PayPal in 2002. The partnership agreement was valued at $1.5 billion in shares.