[REVISION HISTORY]

Stripe and Advent end takeover bid for PayPal

Updated 19 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-29 12:54 UTC → 2026-08-31 03:23 UTC · added ~~removed~~

In mid-July 2026, Stripe and Advent International submitted an unsolicited $53 billion joint bid to acquire PayPal at $60.50 per share. PayPal’s board rejected the offer, stating it was inadequate and fell below the $70-per-share valuation the company deems appropriate. On July 28, PayPal reported Q2 2026 earnings that exceeded forecasts, with $8.68 billion in revenue and an adjusted EPS of $1.38. By mid-August, reports indicated that PayPal had entered renewed negotiations with Stripe and Advent International to explore a potentially higher valuation. These discussions involved a structure where Stripe and Advent would become equal 50% co-owners of the combined entity without splitting the business. Despite these ongoing talks, PayPal reportedly rejected an initial takeover offer from the consortium as negotiations continued regarding a higher purchase price. On August 28, the takeover attempt ended after the consortium abandoned its bid. Negotiations stalled because PayPal found the offers insufficient, and the board raised concerns regarding financing security and potential regulatory hurdles. The news of the failed deal triggered a significant market reaction, with PayPal shares plunging by as much as 16 percent in premarket trading, erasing much of the gains from the recent summer rally. ~~While~~ Following the ~~deal has failed, reports suggest~~ collapse of the ~~consortium could potentially return to negotiations if market conditions change. These developments occur as CEO Enrique Lores implements~~ bid, PayPal shares experienced a ~~strategic turnaround plan, which includes restructuring the company into three operating models—checkout solutions, consumer financial services (including Venmo),~~ decline of approximately 13 percent. Wall Street analysts responded by adjusting their outlooks; Mizuho Financial Group lowered its price target from $60 to $51, and ~~payment services/crypto—and a plan~~ Loop Capital reduced its target from $62 to ~~reduce~~ $50, citing the ~~workforce by 20% over~~ loss of the ~~next two to three years.~~ acquisition premium. However, Keefe Bruyette maintained an ‘Outperform’ rating with a $70 price target, suggesting the previous bid may have been too low.

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