PayPal gets a surprise bid above $53 billion | No acquisition agreement yet
TL;DR
Stripe and Advent bid $60.50 a share for PayPal, valuing it above $53B; no agreement has been reached.
A surprise takeover bid sent PayPal shares up nearly 17%, but the company has not accepted a deal. Reuters reported on July 15, citing two people familiar with the matter, that Stripe and Advent International offered $60.50 a share in cash, valuing PayPal at more than $53 billion.
The offer is about 28% above PayPal's Tuesday close and is backed by roughly $50 billion in committed bank financing. CNBC reported that Stripe, Advent, and Block would contribute a combined $17 billion of equity. PayPal's board could meet as soon as July 20 to discuss the proposal.
The unsolicited proposal was submitted in early July after an initial approach in April. Reuters reported that Stripe and Advent had received no response. Semafor reported, citing people familiar with the matter, that PayPal was not interested at the time but its board would still discuss the bid. The companies declined to comment, and no acquisition agreement has been reached.
The proposal does not call for breaking up PayPal. Stripe and Advent would each own half of the company, and the combined platforms would process about $3.7 trillion in payments annually. PayPal would add more than 430 million consumer accounts, Venmo, and stablecoin and crypto payment operations.
PayPal's market value peaked near $360 billion in 2021 and fell as low as about $36 billion this year. First-quarter revenue rose 7% to $8.35 billion. The $60.50 figure remains a buyer's offer, with no signed transaction documents.
via Semafor / Reuters / CNBC
The offer is about 28% above PayPal's Tuesday close and is backed by roughly $50 billion in committed bank financing. CNBC reported that Stripe, Advent, and Block would contribute a combined $17 billion of equity. PayPal's board could meet as soon as July 20 to discuss the proposal.
The unsolicited proposal was submitted in early July after an initial approach in April. Reuters reported that Stripe and Advent had received no response. Semafor reported, citing people familiar with the matter, that PayPal was not interested at the time but its board would still discuss the bid. The companies declined to comment, and no acquisition agreement has been reached.
The proposal does not call for breaking up PayPal. Stripe and Advent would each own half of the company, and the combined platforms would process about $3.7 trillion in payments annually. PayPal would add more than 430 million consumer accounts, Venmo, and stablecoin and crypto payment operations.
PayPal's market value peaked near $360 billion in 2021 and fell as low as about $36 billion this year. First-quarter revenue rose 7% to $8.35 billion. The $60.50 figure remains a buyer's offer, with no signed transaction documents.
via Semafor / Reuters / CNBC
