EBay (EBAY) could repurchase its own stock after the spinoff of payments arm PayPal, says Citigroup in a report. Like recent reports from JPMorgan and Morgan Stanley, Citigroup’s report also views eBay as a possible takeover target. The spinoff of PayPal is slated for July 17. In a stock distribution, each common equity holder of eBay as of July 8 will receive one PayPal share. PayPal will trade under ticker PYPL starting on July 20. Mark May, an
PayPal’s acquisition of Xoom (XOOM) for $890 million late Wednesday puts it into competition with Western Union (WU) in international money transfers and builds on its earlier purchase of Venmo, a person-to-person mobile app for millennials. PayPal, which will be spun off on July 17 by eBay (EBAY), agreed to acquire Xoom for $25 per share in cash. The deal is expected to close in Q4 and will be “slightly dilutive” to PayPal’s non-GAAP earnings per
JPMorgan raised its price target on eBay (EBAY) ahead of its spinoff of payments arm PayPal, and said a “stand-alone” eBay could be involved in M&A. PayPal, meanwhile, has been viewed as a possible partner of Alibaba Group or a takeover target. PayPal will face stiff competition from Apple (AAPL), Google (GOOGL) and Samsung in mobile payments, some analysts say. Doug Anmuth, a JPMorgan analyst, raised his eBay price target to 64 from 60. “Some of