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PayPal faces $53 bn takeover bid from Stripe and Advent International
Stripe and private‑equity firm Advent International have submitted a joint offer to acquire PayPal Holdings. The proposal values PayPal at more than $53 billion, based on a cash price of $60.50 per share – roughly a 28 % premium to the Tuesday closing price of $47.37. The bid is backed by about $50 billion of committed bank financing and would give Stripe and Advent equal 50‑percent stakes in PayPal, with no plan to split the company.
PayPal’s market capitalisation has fallen dramatically, from a pandemic‑era peak of about $360 billion in 2021 to roughly $36 billion in 2026, after a 40 % share‑price decline over the past year. New CEO Enrique Lores, appointed in March, has reorganised the business into three units and is pursuing cost‑saving measures.
The board is expected to meet in late July to consider the proposal. Analysts and retail traders argue the offer undervalues PayPal, with some suggesting a $70‑$100 per‑share range. The news sparked a sharp rally in PayPal stock, which rose 15‑17 % in pre‑market trading. Potential antitrust scrutiny in the United States and Europe is also expected if the deal proceeds.