PayPal Says $53 Billion Stripe-Advent Takeover Offer Undervalues It

Published Jul 21, 05:41 PM UTC

PayPal Holdings (PYPL) received a $53 billion takeover bid from rival Stripe and private equity firm Advent International, valuing the company at $60.50 per share, a 28% premium to its July 14 close. However, PayPal's board considers the offer undervalued and has not formally responded. The potential acquisition comes as PayPal loses ground to competitors like Apple, Shopify, Affirm, Klarna, Cash App, and Zelle. New CEO Enrique Lores is pursuing an AI-driven strategy to cut costs and reinvest. PayPal reported Q1 net revenues of $8.35 billion, beating estimates, but non-GAAP operating income fell 5% YoY. The stock has dropped 25.6% over 52 weeks but gained 31% in the past month amid acquisition interest. Analysts at Barclays upgraded the stock from Underweight to Equal Weight. The company reports Q2 earnings on July 28.