PayPal receives $53 billion takeover offer from Stripe and Advent

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Stripe and Advent make PayPal bid

Highlights

Stripe and Advent offered $60.50 a share for PayPal.
The bid values PayPal at more than $53 billion.
The offer carries a roughly 28% premium.
PayPal has lost more than 40% in market value over 12 months.

The offer values PayPal at $60.50 per share, or more than $53 billion, and includes about $50 billion in committed bank financing, Reuters reported. The price represents a roughly 28% premium to PayPal’s closing share price on Tuesday.

A takeover bid for a payments pioneer

Under the proposal, Stripe and Advent would jointly own PayPal, with each holding an equal stake. Stripe and Advent made an initial approach in April and submitted the latest offer earlier this month. There is no certainty that the discussions will lead to a transaction.

PayPal was one of the earliest major names in digital payments, but its position has weakened as consumers moved toward rival services such as Apple Pay and Google Pay. The company’s market capitalization peaked at about $360 billion in 2021, then fell to as low as roughly $36 billion this year. Over the past 12 months, PayPal has lost more than 40% of its market value.

PayPal tries to reset

PayPal is already undergoing a restructuring under Chief Executive Enrique Lores, who took over in March. In April, the company split its operations into three units: checkout, Venmo consumer financial services, and payments and crypto.

The company reported first-quarter revenue of $8.35 billion, up 7% and above analyst expectations of $8.05 billion. Total payment volume rose 8% on a currency-neutral basis to about $464 billion.

Lores has also outlined plans to use artificial intelligence to streamline operations and reduce duplication across the company. PayPal has said the effort could save about $1.5 billion over the next two to three years, with savings reinvested to support growth.

Payments deals gather pace

The reported PayPal offer reflects a broader wave of dealmaking in global payments. Buyers are seeking scale as traditional payment processing slows and faster-growing areas such as cross-border and business payments become more important.

Stripe is one of the industry’s most valuable private companies, recently valued at $159 billion in a tender offer. A PayPal deal would give it control of one of the best-known consumer payments brands, while Advent would gain exposure to a business still processing hundreds of billions of dollars in quarterly payment volume.

We also reported that Stripe launched a crypto payment system for AI agents on Base.

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