How PayPal went from Wall Street favorite to unwilling merger target
PayPal, once a Wall Street darling with a $360 billion market cap in 2021, is now facing an unwanted $53 billion takeover bid from rival Stripe and private equity firm Advent International. The company's board believes the $60.50 per share offer is too low and is expected to meet to discuss next steps. PayPal's decline stems from slowing growth, intensified competition from Apple Pay and other rivals, failure to capitalize on digital banking and AI trends, and leadership instability with three CEOs in four years. Analysts suggest Stripe and Advent could raise their bid, given they have assembled $17 billion in equity and $50 billion in bank financing. However, competing bids appear unlikely. PayPal's quarterly earnings report later this month could influence the bid's outcome, with a weak report potentially increasing pressure on the company.
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