PayPal Plunges 15% After Reports That Advent, Stripe Abandon $53 Billion Bid
PayPal shares fell as much as 16% in premarket trading Friday after Bloomberg reported that Stripe and Advent International abandoned their pursuit of the company.
Advent International and Stripe have reportedly abandoned their $50 billion pursuit of PayPal, ending months of speculation over a potential deal. According to Bloomberg, the consortium had offered more than $50 billion for the company, but has now decided to drop their bid. PayPal shares plummeted by up to 16% in premarket trading on Friday, a significant drop following weeks of speculation surrounding the potential acquisition.
Both companies declined to comment on the matter. Founded in the late 1990s, PayPal was once an early leader in digital payments, but has struggled to keep up with competitors like Apple and Google. After a stock slump, Stripe reportedly began considering a bid for PayPal in February. However, strong second-quarter earnings for PayPal have since lifted its market value to around $52.6 billion, with the company having a new CEO, Enrique Lores, in place since March.
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