PayPal shares plunge after Stripe and Advent abandon takeover bid

PayPal Stripe Advent International takeover bid fintech

PayPal shares experienced a significant decline of approximately 13% following reports that a potential takeover bid by a consortium consisting of Stripe and Advent International has collapsed.

The reported buyout attempt involved a bid of roughly $60.50 per share, totaling approximately $53 billion. However, PayPal's board reportedly rejected the offer, viewing the valuation as a significant undervaluation of the company's worth. Analysts suggest that the failure to reach a price consensus and the potential for intense regulatory scrutiny may have contributed to the decision to abandon the deal.

In response to the news, Wall Street analysts have adjusted their outlooks. Mizuho Financial Group lowered its price target for PayPal from $60 to $51, while Loop Capital reduced its target from $62 to $50. Both firms cited the loss of the acquisition premium and concerns over organic growth and competition. Conversely, Keefe Bruyette maintained an 'Outperform' rating with a $70 price target, suggesting the previous bid may have been too low.

Entities

Advent International · Loop Capital · Mizuho Financial Group · PayPal · Stripe

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] Mizuho lowered its price target for PayPal to $51. bitnewsbot.com
[○ 1 SOURCE] The proposed buyout price was approximately $60.50 per share. finance.technews.tw
[○ 1 SOURCE] The total acquisition value was estimated at approximately $53 billion. finance.technews.tw
[● 3 SOURCES] Stripe and Advent International abandoned a takeover attempt for PayPal. bitnewsbot.com · finance.technews.tw
[○ 1 SOURCE] PayPal's board rejected the offer because they believed it significantly undervalued the company. finance.technews.tw
[○ 1 SOURCE] Keefe Bruyette maintained an 'Outperform' rating with a $70 target. bitnewsbot.com
[● 2 SOURCES] PayPal shares dropped nearly 13% last week. bitnewsbot.com
[● 2 SOURCES] Loop Capital lowered its price target for PayPal to $50. bitnewsbot.com