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eBay Inc.: PayPal Spinoff Official, Sells eBay Enterprise
Mid-July is proving to be a very busy time for eBay Inc.
The San Jose, Calif.–based commerce platform is scheduled to spin off its PayPal division on July 17, and the two will operate as separate companies.
On July 16, it was announced that a consortium of private equity firms led by Permira and Sterling Partners agreed to acquire the eBay Enterprise division from eBay Inc. for $925 million. eBay enterprises develops and manages websites for bricks-and-mortar retailers. According to media reports, eBay spent $2.4 billion to acquire the enterprise business in 2011 when it went by the moniker GSI Commerce.
Also on July 16, eBay announced results for the second quarter of its fiscal year. Net revenue for eBay Inc. was reported to be $4.4 billion. Its operating margin decreased to 16.9 percent for the quarter. It also reported that eBay generated $1.1 billion of cash flow from its continuing operations.
