XML 56 R24.htm IDEA: XBRL DOCUMENT v3.2.0.727
Subsequent Events
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

On July 1, 2015, PayPal announced an agreement to acquire Xoom Corporation (NASDAQ:XOOM) for approximately $890 million net of cash. This acquisition is expected to close in the fourth quarter of 2015, subject to customary closing conditions, including regulatory approvals. Xoom allows users to transfer money, pay bills, and reload prepaid mobile phones domestically and internationally through its web and mobile platforms. The acquisition of Xoom is intended to enable PayPal to offer a broader range of services to its global customer base, increase customer engagement, and expand its presence in international markets.

During the second quarter of 2015, our Board of Directors approved a plan to sell the businesses underlying our Enterprise segment. On July 16, 2015, we signed a definitive agreement to sell these businesses for $925 million and, subject to customary closing conditions, we expect to close this transaction in the second half of 2015.

On June 26, 2015, the Board of Directors of eBay Inc. approved the separation of PayPal (consisting primarily of our Payments segment) through the distribution of 100% of the outstanding common stock, par value $0.0001 per share, of PayPal Holdings, Inc., a wholly owned subsidiary of eBay, to eBay's stockholders. To consummate the distribution, the eBay Board declared a pro rata dividend of PayPal Holdings, Inc. common stock to eBay’s stockholders of record as of the close of business on July 8, 2015 (the "Record Date"). Each eBay stockholder received one (1) share of PayPal Holdings, Inc. common stock for every share of eBay common stock held at the close of business on the Record Date. The Distribution occurred on July 17, 2015 (the "Distribution Date"). Immediately following the Distribution, PayPal became an independent, publicly traded company and is listed on The NASDAQ Stock Market under the ticker “PYPL.” eBay will continue to trade on The NASDAQ Stock Market under the ticker “EBAY.” The historical financial position and results of operations of PayPal will be reported as discontinued operations in the third quarter of 2015.

In connection with the Distribution, eBay and PayPal have entered into a separation and distribution agreement as well as various other agreements that will govern the relationships between the parties going forward, including an operating agreement, transition services agreement, tax matters agreement, employee matters agreement, intellectual property matters agreement and colocation services agreements. The separation and distribution agreement was entered into on June 26, 2015. The other agreements were entered into on the Distribution Date. Under the tax matters agreement, eBay generally will be responsible for all taxes (and will be entitled to all related refunds of taxes) imposed on eBay and its subsidiaries (including subsidiaries that will be transferred to PayPal pursuant to the separation) with respect to the taxable periods (or portions thereof) ending on or prior to the Distribution Date.