Story
Stripe and Advent Propose Over $53 Billion Buyout of PayPal, Sources Say
Summary
Payments firm Stripe and private equity giant Advent International have reportedly made a joint offer to acquire PayPal for $60.50 per share, a deal that would value the struggling payments pioneer at a significant premium.
Payments company Stripe and private equity firm Advent International have jointly offered to acquire PayPal Holdings Inc. (PYPL) for more than $53 billion, according to two people familiar with the matter. The proposal, valued at $60.50 per share, represents a significant premium for the digital payments pioneer as it navigates a challenging market.
Offer Details
The offer was submitted earlier in July and is backed by approximately $50 billion in committed financing from banks, the sources said. Key details of the proposal include:
- Valuation: Over $53 billion.
- Price per share: $60.50.
- Premium: Represents a roughly 28% premium to PayPal’s closing share price on Tuesday.
According to the sources, who requested anonymity because the discussions are confidential, the plan is for Stripe and Advent to jointly own PayPal with equal stakes, rather than break up the company. Advent declined to comment, while PayPal and Stripe did not immediately respond to requests for comment.
Background and Timeline
AdThis proposal follows an initial approach made in early April, the sources noted. Stripe and Advent have reportedly not yet received a response from PayPal to their latest offer and are seeking to advance discussions.
There is no certainty that the unsolicited approach will result in a transaction. The development puts pressure on PayPal's leadership to evaluate a potential sale against its ongoing turnaround strategy.
PayPal's Strategic Challenges
The acquisition interest comes as PayPal contends with slowing growth and intense competition from rivals such as Apple Pay and Google Pay. The company's market capitalization has fallen dramatically from its 2021 peak of about $360 billion, losing more than 40% of its value in the past year alone.
In response to these pressures, CEO Enrique Lores, who took over in March, initiated a broad restructuring to simplify the company. In April, PayPal reorganized its operations into three distinct units: checkout, consumer financial services including Venmo, and payments and crypto, alongside several management changes.
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