If You Invested $1,000 In eBay When It Acquired PayPal, Here's How Much You'd Have Now

One of the most well-known internet acquisitions of 2002 was when eBay Inc EBAY announced it was acquiring PayPal Holdings Inc PYPL. Investors who bought eBay shares on the day the deal was announced have done quite well for themselves.

What To Know: eBay announced it was acquiring online payment company PayPal on Aug. 18, 2002. The deal valued PayPal at $1.5 billion six months after the company completed its initial price offering.

The acquisition united a company used as a partner of eBay and was said to help the company’s revenue and user growth.

Thirteen years after the acquisition, eBay spun off PayPal to shareholders and completed a public listing of the company. PayPal can still be used by eBay customers, but is not the only option for the online auction company.

Related Link: EBay Looking Into NFT Marketplace, How The Auction Site Could Gain More Monetizable Users

Investing $1,000 In eBay: Shares of eBay closed at $56.24 after the PayPal acquisition was announced. An investor could have purchased 14.85 shares of eBay with $1,000.

EBay completed a two-for-one stock split on Aug. 29, 2003 and on Feb. 17, 2005. These splits brought the total eBay shares up to 29.70 and 59.40, respectively.

EBay shareholders received one share of PayPal for each eBay share they owned at the time of the July 20, 2015 spin-off.

The $1,000 purchase of eBay shares would not be made up of 59.40 shares of eBay and 59.40 shares of PayPal.

The eBay shares are valued at $4,000.59 based on a share price of $67.35. The PayPal shares are valued at $16,400.93 based on a share price of $276.11.

A $1,000 investment in eBay shares would be worth $20,401.52 today -- not a bad return for 19 years.