PayPal now on ‘breakup watchlist,’ says Gordon Haskett

Gordon Haskett head of event-driven research Don Bilson notes that PayPal (PYPL) confirmed CEO Enrique Lores has decided to re-segment the P&L and give Venmo its own recordkeeping. “Every once in a while, a re-segmenting move like this will foreshadow a sale or a spinoff,” according to the firm, which adds that PayPal “now goes on our breakup watchlist.” The firm says that it is “worth adding” that Bloomberg reported two months ago that PayPal was drawing takeover looks and contends that it is “possible, we suppose, that this Venmo idea has evolved from the discussions that Lores and board have had with folks who approached the company in February.”