Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems.
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Unhappy with the existing eCommerce products at the time, Lütke and team decided to build their own.
Today, Shopify is one of the most popular eCommerce platforms available. In 2019, they processed over $41 billion in gross merchandise volume (GMV) through their platform.
Is Shopify Going to Split?
The simple answer is: we don’t know. Shopify has not made any announcements about plans to split their company. And while there have been rumors circulating about a potential split, nothing has been confirmed.
That being said, there are a few reasons why a split could make sense for Shopify. As a public company, Shopify is under pressure to continue growing at a rapid pace.
While they have been successful so far, there’s always the possibility that they could hit a wall at some point.
If Shopify does decide to split into two companies, it could have a major impact on its stock price. If you own shares of Shopify, or are considering investing in the company, you should closely monitor the situation and be prepared for a possible drop in the stock price.
One way to keep growing would be to split the company into two separate entities. This would allow each entity to focus on their own growth strategy without being held back by the other.
Another reason why a split could make sense is that it would give Shopify more flexibility with their capital structure. Right now, they have one class of stock which gives all shareholders equal voting rights. If they were to split into two companies, they could have different classes of stock with different voting rights.
Conclusion
While there’s no confirmation that Shopify is going to split, there are a few reasons why it could make sense for them to do so. Only time will tell if this is something that they’re actually considering.
