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PayPal weighs $53 billion buyout bid from Stripe and Advent
The company’s board is discussing the proposal but internally views $60.50 a share as insufficient, according to people familiar with the talks.
PayPal is considering a takeover bid that would take the payments company private, with a proposed $53 billion offer from Stripe and buyout firm Advent International, according to Reuters. The deal would mark a sharp shift for PayPal, whose market value peaked at about $360 billion in 2021 before years of slower growth and tougher competition.
PayPal’s board is reviewing the proposal, but people familiar with the company’s discussions say it believes $60.50 a share is not enough. The bid has put pressure on how PayPal’s assets and businesses should be valued, including its merchant checkout operation and its 400 million-plus consumer accounts, Reuters reported.
The article notes that dealmakers are also weighing whether PayPal would be worth more as a single entity or as parts that could be sold off. Reuters points to potential interest in assets such as the Venmo peer-to-peer payments app, as investors and industry figures search for ways to unlock value.
PayPal has faced mounting pressure from rivals including Apple Pay, Google, and Samsung, as well as newer entrants such as Stripe and Affirm. Reuters also said PayPal’s growth slowed after it launched early e-commerce and email-based payments, and that the company acknowledged in February that progress was not meeting board expectations after naming a new CEO, Enrique Lores, in March.