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PayPal jumps after takeover talks value company at $53B
The reported offer price of $60.50 per share implies a 27.7% premium to PayPal's pre-news closing price, after the stock had fallen sharply over the past year and five years.
PayPal Holdings shares surged 17.2% on Wednesday to close at $55.52 after takeover reports said the company is set to be taken private in a deal valued at $53 billion, according to coverage citing Reuters.
The report said Stripe and private equity firm Advent International would acquire PayPal at a price of $60.50 per share, a 27.7% premium to PayPal's closing price before the news, with the transaction appearing amid concerns over intensified competition in digital payments.
Yahoo Finance also noted that PayPal's market value has declined substantially, with the stock down 23.9% over the past 12 months and more than 81% over five years, as CEO Enrique Lores has overseen a restructuring effort that includes splitting the business into three units and targeting up to $1.5 billion in cost savings.
Other reporting cited by Yahoo Finance said Block Inc. was considering joining the Stripe and Advent partnership, potentially routing in around $17 billion, while Macquarie reiterated a neutral stance and set a $50 price target, saying the partnership could emphasize cost discipline and operational improvement.