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Stripe and Advent make $53.4 billion cash offer for PayPal
PayPal would receive $60.50 per share in the proposal, with the financing including about $50 billion from banks and a $17 billion equity contribution from Stripe, Advent, and Block.
Stripe and private equity firm Advent have made a $53.4 billion cash offer to acquire PayPal, putting $60.50 per share on the table, according to Yahoo Finance. The bid would be funded with roughly $50 billion committed by banks, plus about $17 billion in equity split between Stripe and Advent, with Jack Dorsey’s Block also included in the equity funding. The offer drove PayPal shares higher, with the stock up more than 15% after the announcement. PayPal’s board is set to meet as soon as July 20 to weigh the proposal. The company has previously operated as an independent business since separating from eBay in 2015, and its board’s decision will determine whether that independence is maintained.
The rationale for the possible sale is tied to PayPal’s recent performance slump. Yahoo Finance notes the stock peaked in 2021 at about a $360 billion valuation, later falling to roughly a $36 billion bottom this year, while the company also carried out a turnaround that included job cuts of about 4,760 positions, or around a fifth of staff, to target $1.5 billion in savings under its current CEO, Enrique Lores.