Story
Stripe and Advent Propose $53 Billion Buyout of PayPal, Reuters Reports
Summary
Payments firm Stripe and private equity group Advent International have made a joint offer to acquire PayPal for over $53 billion, or $60.50 per share, representing a 28% premium, according to a Reuters report.
Payments giant Stripe and private equity firm Advent International have jointly offered to acquire PayPal Holdings Inc. (NASDAQ: PYPL) for more than $53 billion, according to a report from Reuters citing people familiar with the matter. The unsolicited bid proposes a significant consolidation within the digital payments industry.
The Proposed Deal
The offer values PayPal at $60.50 per share, which represents a 28% premium to the stock’s closing price on Tuesday, the report stated. The proposal would see Stripe and Advent jointly own PayPal, with each holding an equal stake in the company.
To fund the potential acquisition, the bidders have reportedly secured approximately $50 billion in committed financing from a consortium of banks. This substantial financial backing underscores the serious nature of the proposal.
AdTimeline and Company Response
According to the Reuters report, the formal offer was submitted earlier in July, following an initial approach in April. The bidders are reportedly aiming to secure an agreement by the end of the month.
PayPal has not yet responded to the offer, the sources told Reuters. The payments company also did not immediately respond to an emailed request for comment on the matter. The lack of a public response leaves investors and the market to await a formal statement from PayPal's board of directors.
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