Payments company Stripe and private equity firm Advent International have submitted a joint offer to acquire PayPal Holdings for $60.50 per share. The proposal, which values the digital payments pioneer at more than $53 billion, is backed by approximately $50 billion in committed financing from banks. This bid represents a premium of about 28% over PayPal's closing share price on Tuesday, signaling a significant move in the competitive financial technology sector.
The two bidders first approached PayPal in early April, though the company has not yet provided a formal response. Under the current proposal, Stripe and Advent would each hold a 50% stake in PayPal, with no immediate plans to break up the business. The potential acquisition comes as PayPal seeks to navigate a period of intense competition from newer payment methods like Apple Pay and Google Pay, which have eroded its market dominance.
PayPal has faced a difficult stretch in recent years, with its market capitalization falling from a 2021 peak of roughly $360 billion to as low as $36 billion earlier this year. In March, new CEO Enrique Lores initiated a major turnaround strategy, reorganizing the company into three distinct divisions focused on checkout, consumer services like Venmo, and crypto-payments. The company has also been working to streamline its operations and reduce costs.
While the offer has sparked a rally in PayPal's stock price, the outcome remains uncertain. Both Stripe and Advent have declined to comment on the reports, and PayPal has not publicly acknowledged the proposal. If the deal proceeds, it would rank among the largest technology acquisitions in recent history, potentially reshaping the landscape of global digital payments as the industry continues to consolidate.