Payments company Stripe and private equity firm Advent International are reportedly collaborating on a bid to acquire PayPal Holdings Inc at $60.50 per share, valuing the payments company at over $53 billion.
The offer, submitted earlier this month, is supported by approximately $50 billion in committed financing from banks and represents about a 28% premium to PayPal’s closing share price on Tuesday.
The proposal builds on an initial approach made in early April. Stripe and Advent have not received a response from PayPal and are looking to continue discussions in the coming weeks, the sources added.
Under the proposal, Stripe and Advent would jointly own PayPal, with each holding an equal stake, instead of breaking up the company.
After taking over in March, PayPal CEO Enrique Lores launched a comprehensive turnaround effort to streamline the payments company and enhance its focus on growth. In April, the company divided its operations into three units focused on checkout, consumer financial services Venmo, and payments and crypto, while also implementing a series of management changes.
The company’s market capitalization reached approximately $360 billion in 2021 and dropped to about $36 billion this year. It has lost more than 40% of its market value over the past year.
By CEO NA Editorial Staff
