Key Takeaways
Stripe and Advent International offered $60.50 a share for PayPal, valuing the company at more than $53 billion, a roughly 28% premium to Tuesday's close, Reuters reported July 15.
The bid carries about $50 billion in committed financing from banks, the two would own PayPal equally, and they do not plan to break the company up.
PayPal has not responded to the formal offer, submitted earlier this month after an initial approach in April, and its stock jumped on the report.
Payments processor Stripe and private equity firm Advent International have made a joint offer to buy PayPal for $60.50 a share, valuing the company at more than $53 billion, Reuters reported on July 15, citing people familiar with the matter. The offer is a roughly 28% premium to PayPal's Tuesday close, and it sent the stock sharply higher when the report landed.
The structure is the notable part. The two suitors lined up about $50 billion in committed financing from banks, they would own PayPal in equal stakes, and they do not plan to break the company apart. Reuters reported the formal offer went in earlier this month, after an initial approach in April. PayPal has not responded to either, according to Yahoo Finance.
The target is a company in transition. The Wall Street Journal reported PayPal is in the early stages of a turnaround under new CEO Enrique Lores. PayPal helped invent online payments and was worth more than $350 billion at its 2021 peak, so a $53 billion take-private bid from Stripe, a rival that stayed private and built the developer-first payments stack underneath much of the modern internet, says a lot about how far the ground has shifted.
A deal this size would redraw the map of who owns the rails that money moves on, and it is arriving in a week when that map is already being redrawn. Swift just turned on its blockchain ledger with 17 banks piloting tokenized deposits, and Stripe itself has been spending in unexpected places, including backing the $500 million Intercept fund to end respiratory viruses. Whether PayPal's board engages is the next question. Worth watching.
People Also Ask
How much are Stripe and Advent offering for PayPal?
$60.50 per share, which values PayPal at more than $53 billion. That is a premium of about 28% over PayPal's closing price on Tuesday, July 14, per Reuters.
Will PayPal accept the Stripe and Advent buyout offer?
PayPal has not responded to the offer as of July 15, and it has not responded to the initial approach made in April. Its board would need to engage, negotiate, and recommend any deal before shareholders vote.
Would Stripe and Advent break up PayPal?
No. Reuters reported the two would jointly own PayPal with equal stakes and do not plan to break up the company.
What happened to PayPal stock after the offer was reported?
PayPal shares jumped on the July 15 report. A bid at $60.50 a share is not a completed deal, so the stock's move reflects the market weighing the odds the offer leads somewhere.