Stripe and private equity firm Advent International have made a joint offer to acquire PayPal Holdings Inc for $60.50 per share, amounting to a valuation of more than $53 billion. This offer, which represents a 28% premium over PayPal's recent closing price, is backed by approximately $50 billion in financing from banks.
The proposal follows an initial approach made in early April, but Stripe and Advent have yet to receive a response from PayPal. If successful, the acquisition would see both firms holding equal stakes in PayPal, rather than splitting the company.
PayPal has faced increasing competition from alternative payment methods and has seen its market capitalization decline sharply from a peak of about $360 billion in 2021 to around $36 billion this year, losing over 40% of its market value in the past 12 months.
Under CEO Enrique Lores, who took over in March, PayPal has initiated a turnaround strategy aimed at simplifying operations and focusing on growth, including restructuring its business into three units. The outcome of this acquisition proposal could have significant implications for the digital payments sector, particularly as PayPal seeks to regain its competitive edge