Stripe and Advent International Propose $53 Billion Buyout of PayPal

Payment company Stripe, together with private equity firm Advent International, has submitted a $60.5 per share acquisition offer for PayPal Holdings, representing a 28% premium over PayPal's closing price on Tuesday. If completed, the deal would value PayPal at over $53 billion, according to Reuters. The offer, made earlier this month, is backed by approximately $50 billion in committed bank financing. Both companies declined to comment on the report.

Stripe and Advent initially approached PayPal with a proposal in early April but did not receive a response. They are now seeking to advance discussions in the coming weeks, though sources caution that talks may not necessarily lead to a deal. The plan envisions Stripe and Advent as equal co-owners of PayPal, maintaining the company's current structure without breaking it up.

Founded in the late 1990s by figures including Peter Thiel and Elon Musk, PayPal was an early leader in digital payments. However, it has faced increasing competition from alternative payment methods and the rise of Apple Pay and Google Pay, which have captured growing market shares. PayPal's market value peaked at $360 billion in 2021 but has since fallen to a low of $36 billion this year, losing over 40% of its market capitalization in the past 12 months.

In March, PayPal appointed Enrique Lores as CEO, who initiated a major restructuring aimed at simplifying operations and focusing on growth. This included splitting the company into three divisions in April and unveiling plans to expand AI adoption and implement workforce reductions. Stripe, a private company, is considered one of the highest-valued firms in the industry, with a valuation of $159 billion in a February tender offer, marking a more than 70% increase from the previous year.