- Stripe and Advent International have reportedly offered $53 billion to acquire PayPal.
- The joint bid includes $50B in committed bank financing and values PayPal at a 28% premium.
- PayPal is undergoing a major turnaround as it battles slowing growth and rising competition.
Payments giant Stripe and private equity firm Advent International have reportedly submitted a joint offer to acquire PayPal Holdings in a deal valued at more than $53 billion.
According to reports, the offer values PayPal at $60.50 per share, representing a 28% premium to the company’s Tuesday closing price. The proposal is backed by around $50 billion in committed financing from banks.
The offer was submitted earlier this month after an initial approach made in early April. Reuters reported that PayPal has not yet responded, while Stripe and Advent are expected to continue discussions in the coming weeks. There is no guarantee the talks will lead to a final agreement.
Stripe and Advent Plan Joint Ownership
Rather than splitting PayPal’s businesses, Stripe and Advent reportedly intend to own the company together, each holding an equal stake. The approach signals that both firms see value in rebuilding PayPal as a single payments platform instead of selling off individual assets.
Bloomberg had previously reported in February that Stripe was exploring a potential acquisition of all or parts of PayPal. The latest offer indicates those discussions have moved further, with financing now in place.
PayPal Pushes Turnaround as Competition Grows
The acquisition interest comes during one of PayPal’s toughest periods. Once a dominant name in digital payments, the company has lost ground to newer payment services such as Apple Pay and Google Pay while struggling to modernize its technology.
PayPal’s market value reached nearly $360 billion in 2021 during the pandemic-driven boom. Since then, slowing growth and rising competition have erased much of those gains. The company’s valuation dropped to roughly $36 billion earlier this year, while its shares have fallen more than 40% over the past year.
Since taking over as CEO in March, Enrique Lores has launched a broad restructuring plan aimed at simplifying the business and returning it to growth.
In April, PayPal reorganized its operations into three divisions covering checkout, Venmo and consumer financial services, and payments and crypto. Management changes followed as part of the overhaul.
Earlier reports also said the company plans to reduce its workforce by around 20% over the next two to three years as part of its cost-cutting efforts.
Stripe Builds Scale Through Crypto Expansion
On the other hand, Stripe has strengthened its position over the past year while expanding beyond traditional payments. The privately held company reached a valuation of $159 billion during an employee tender offer in February, up from $106.7 billion a year earlier.
The company has also remained profitable while continuing to invest in acquisitions and product development. Its recent purchases of stablecoin infrastructure platform Bridge and crypto wallet provider Privy showcase its growing focus on blockchain-based payment services.
Meanwhile, PayPal continues to expand its consumer offerings despite the takeover interest. The company recently introduced its “Pay in 30 Days” buy now, pay later service in the United Kingdom, allowing shoppers to delay full payment for up to 30 days on purchases between £1 and £900 without fees.
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