It's not the first of its kind but the freshly launched Market Vectors Global Spin Off ETF (NYSEARCA:SPUN) could be debuting at just the right time to take advantage of the increasing shareholder interest in capturing the intrinsic value that comes with companies spinning off subsidiaries.
The most notable corporate spinoff is the one coming this summer - eBay's (NASDAQ:EBAY) planned spinoff of PayPal (NASDAQ:PYPL). eBay itself including PayPal has a market cap of around $75B but analysts are already frothing at the idea of PayPal's value as an independent company. Needham & Co. came up with an estimate of around $50B. Carl Icahn and Elon Musk agree that PayPal needs to be spun off with Musk saying that PayPal could be worth as much as $100B. You can see why investors are so interested in PayPal's spinoff.
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