Tag: Advent International

  • PayPal Board Rejects $53 Billion Takeover Proposal as Too Low, Seeks Improved Offer

    PayPal Board Rejects $53 Billion Takeover Proposal as Too Low, Seeks Improved Offer

    PayPal Holdings is currently reviewing a $53 billion takeover bid from Stripe and Advent International. The proposal values the payments giant at $60.50 per share, but the board has indicated that the price is too low. Directors are now deciding whether to enter formal negotiations or push for a significantly higher valuation.

    The review comes as PayPal faces slower growth, fierce competition, and a series of leadership changes. Once valued at nearly $360 billion during the 2021 digital commerce boom, the company’s market cap has dropped sharply as rivals have gained ground in payments and digital wallets. Investors are watching closely to see if a revised offer can unlock more value from PayPal’s assets, including Venmo and its massive global consumer network.

    Board Questions the Current Takeover Bid

    According to sources familiar with the talks, the board does not support the offer in its current form. Some directors question whether PayPal should even engage in negotiations at $60.50 per share, believing that the company’s latest turnaround plan could justify a higher valuation. Stripe and Advent may have room to improve their bid, having secured $17 billion in equity commitments and arranged approximately $50 billion in bank financing, giving them capacity to raise the price.

    PayPal has not commented publicly on the takeover discussions. Chief Executive Enrique Lores, who took charge in March after the company replaced Alex Chriss, has also remained silent on the proposal. The leadership change is part of another turnaround effort aimed at restoring growth.

    Slower Growth Adds Pressure on PayPal

    PayPal built its reputation on online checkout and digital payments, but rivals such as Apple, Google, Samsung, Stripe, and Affirm have introduced new payment tools and banking services. PayPal has been slower to move into mobile payments, digital banking, and artificial intelligence. Apple Pay now leads PayPal in the U.S. digital wallet market, holding a ten-point advantage according to PYMNTS Intelligence. PayPal also trails several competitors in agentic commerce, where software can complete purchases on behalf of consumers.

    Growth has weakened across Venmo and other key services. Buy now, pay later products have not delivered the expected momentum. Meanwhile, PayPal’s customer base has flattened, so management now focuses more on earnings from existing users. The company admitted in February that “the pace of change and execution was not in line” with board expectations, as it announced yet another leadership change.

    Earnings May Shape the Next Move

    PayPal’s upcoming quarterly results could significantly influence both the board and the bidders. Weak results might increase pressure to negotiate, while stronger figures could support the board’s push for a higher price and improve its bargaining position. Analysts see few likely rival bidders. Morgan Stanley called the Stripe and Advent proposal the “most credible path to value realisation,” citing strong wallet competition and PayPal’s mature customer base.

    Deal advisers are also studying PayPal’s separate businesses, including Venmo, merchant checkout services, and more than 400 million consumer accounts, to assess whether these assets carry more value together or through separate sales. The board must now compare the offer with its turnaround targets. Stripe and Advent must decide whether a higher bid can win support. PayPal’s earnings report will provide the next major test for both sides.

  • Stripe and Advent’s $53 Billion Bid Lifts PayPal Stock Higher

    Stripe and Advent’s $53 Billion Bid Lifts PayPal Stock Higher

    Shares of PayPal moved higher after reports surfaced that payments giant Stripe and private equity firm Advent International have jointly submitted a takeover proposal worth more than $53 billion. The consortium reportedly offered $60.50 per share—about 28% above PayPal’s recent closing price—and has secured around $50 billion in bank commitments to support the deal.

    Stripe and Advent Await PayPal’s Response

    According to sources familiar with the matter, Stripe and Advent submitted the latest proposal earlier this month, following an initial approach in early April. PayPal’s board has not yet responded, but the two firms hope to move discussions forward in the coming weeks. Under the proposed structure, Stripe and Advent would each hold a 50% stake and keep PayPal intact rather than splitting its operations. The acquisition would give Stripe access to PayPal’s broad consumer network, including Venmo and Braintree.

    PayPal’s Strong First-Quarter Results

    The takeover interest follows stronger-than-expected first-quarter earnings from PayPal. Revenue rose 7% year-over-year to $8.35 billion, beating analysts’ estimate of $8.05 billion. Currency-neutral total payment volume increased 8% to approximately $464 billion. Adjusted earnings came in at $1.34 per share. Despite the solid results, investors have been seeking clearer evidence that PayPal’s turnaround can sustain growth. Management has been pursuing operational improvements through artificial intelligence, expecting AI tools and organizational changes to reduce duplicated work and generate about $1.5 billion in savings over the next two to three years, which will be directed toward growth initiatives.

    PayPal Shares Slip Before Reported Offer

    PayPal shares fell 0.59% during Monday’s regular trading session, closing at $47.37, according to Google Finance. The stock recovered slightly after hours, edging 0.06% higher to $47.40. The proposed $60.50 price stands well above the latest closing level. Stripe remains one of the world’s most valuable privately held fintech companies, valued at approximately $159 billion in a February employee tender offer. The company reported that businesses using its platform generated $1.9 trillion in payment volume during 2025, up 34% from the previous year. Advent would bring private equity capital and payments-sector experience, managing about $94 billion in assets as of March 31, 2026.

    What’s Next?

    Any completed acquisition would require financing, shareholder, and regulatory reviews. The reported proposal remains pending while Stripe and Advent wait for PayPal’s response. Investors will watch the next trading session for any reaction to the acquisition news.