PayPal in talks with Stripe and private equity firm over sale
SAN FRANCISCO: After rejecting a previous offer, payments giant PayPal is considering a new deal to sell itself to a group of investors that includes private financial company Stripe, according to a Wall Street Journal report Friday.
After rejecting an earlier proposal, payments firm PayPal is contemplating a potential sale to a group of investors, which includes private financial entity Stripe and private equity firm Advent International, according to a recent Wall Street Journal report. The original offer in July valued PayPal at $53 billion, a significant 85% decrease from its peak valuation of nearly $360 billion in 2021.
The company recently announced its 2026 profit expectations were lower than anticipated. PayPal has been facing challenges in competing against other payment providers, including Apple Pay and Google Pay. Negotiations for a new deal have been ongoing since the previous offer fell through. Shares of PayPal rose following the news, closing up nearly 1.8%.
The news of a possible sale has not prompted a statement from PayPal. Stripe, co-founded in 2010 by brothers Patrick and John Collison, started as an online payment facilitator for businesses. Despite being privately held, Stripe is viewed as a potential candidate for a future IPO, with a market value close to $185 billion. PayPal was established in 1998 by Peter Thiel, while Elon Musk became an early partner after the company merged with his startup X.com.
The company pioneered the concept of peer-to-peer online payments, known as P2P payments. PayPal's early leaders earned the nickname "PayPal mafia" as several became founders or leaders of notable companies such as Tesla, SpaceX, LinkedIn, YouTube, and Palantir.
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