business
Stripe and Advent International Offer More Than $53 Billion to Acquire PayPal
Stripe and Advent International submitted an offer exceeding $53 billion to acquire PayPal earlier this month. PayPal shares rose 20% in premarket trading, the largest single-day gain since at least 2015. The bid carries a proposed price of $60.50 per share.
Jul 15, 8:37 AM·1m read3 sources
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Stripe and Advent International submitted a bid to acquire PayPal for more than $53 billion earlier this month. The offer is backed by approximately $50 billion in committed bank financing. PayPal shares rose 20% in premarket trading in New York after the report, the largest single-day gain since at least 2015.
The proposed price of $60.50 per share represents a roughly 28% premium to Tuesday's closing price. Call option volume and implied volatility for PayPal surged ahead of the report. Rumors of Stripe interest in PayPal first appeared in late February.
PayPal's market capitalization now stands at $36 billion, down from $360 billion in 2021. Its share price peaked at $308 in July 2021. New CEO Enrique Lores has focused on cost cuts and strategy simplification amid competition from Apple Pay and Google Pay.
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Strategic infrastructure expansionMarket value collapse
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CorroborationModerate · 3 sources
