Advent, Stripe in talks to up PayPal offer
PayPal Holdings is in negotiations with payments group Stripe and private equity firm Advent International over a potential takeover, with the parties discussing a higher price after an initial offer was rejected, according to a report by the Wall Street Journal.
PayPal is engaged in discussions with payments company Stripe and private equity firm Advent International regarding a potential acquisition, according to the Wall Street Journal. The parties are deliberating on a higher bid following an initial offer that was declined. The report cited unnamed sources familiar with the matter, stating that Stripe and Advent had proposed a price of $60.50 per share for PayPal in July, valuing the company at around $53 billion.
However, PayPal deemed the offer insufficient, leading to further negotiations over a more favorable bid. An agreement might be reached within the next few weeks, but there is no guarantee that talks will culminate in a deal. PayPal's stock surged by 1.8% on Friday following reports of the ongoing talks, increasing its market value to nearly $53 billion.
Prior to the initial approach, the stock had been hovering near historic lows and reflected a valuation of approximately $40 billion. At its peak in 2021, during the pandemic-driven surge in technology and online payments stocks, PayPal's market capitalization reached over $280 billion. This potential transaction comes at a time when PayPal is undergoing a significant turnaround under Chief Executive Enrique Lores, who assumed the role in March after the company issued a profit warning.
Lores, formerly the CEO of HP, has initiated a restructuring program that involves substantial cost reductions and a reorganization of PayPal into three business divisions. The company also plans to accelerate its utilization of artificial intelligence as part of the turnaround efforts. In its latest earnings report, PayPal reported ongoing growth at Venmo and Braintree, alongside expansion in its debit card and buy now, pay later businesses.
The proposed acquisition would mark a substantial expansion for Stripe, a privately held company backed by investors such as Sequoia Capital. Founded by brothers Patrick and John Collison, Stripe achieved a valuation of $159 billion earlier this year.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Stripe and Advent may increase offer for PayPal braziljournal.com
- Payment service providers: PayPal negotiates with Stripe and Advent about acquisition handelsblatt.com
