PayPal in talks to sell itself to Stripe and Advent

PayPal ↗ 1.77% is in active discussions to sell itself to a consortium of Stripe and private-equity firm Advent International, in what would be the largest fintech acquisition ever, according to reporting by The Wall Street Journal on August 14.wsj

The two sides have been negotiating a potentially higher price after PayPal's board rejected an initial offer of $60.50 per share made in July, which valued the company at more than $53 billion. A deal could come together within the coming weeks, the Journal reported, citing people familiar with the matter.techcrunch+1

A Bid Rejected but Not Dead

Stripe and Advent first submitted their joint offer in July, backed by approximately $50 billion in committed bank financing. The bid represented a 28% premium to PayPal's closing price at the time. Under the proposal, Stripe and Advent would hold equal stakes and keep PayPal intact rather than breaking up the company.reuters+3

PayPal viewed the price as insufficient but continued engaging with the buyers. The company has been working with Goldman Sachs ↘ 0.31% and Evercore ↘ 1.62% to evaluate strategic options including a potential sale.bloomberg+1

PayPal declined to comment on the latest reports, while a Stripe spokesperson said the company does not "comment on rumors or speculation," according to TechCrunch.techcrunch

A Turnaround in the Balance

The talks are unfolding as PayPal undergoes a restructuring led by CEO Enrique Lores, who joined in March after years at HP ↘ 3.80%. In April, Lores split PayPal's operations into three units covering checkout solutions, consumer financial services including Venmo, and payment services with its cryptocurrency division. The company is also weighing workforce reductions of up to 20% over the next two to three years.mezha

For Stripe, acquiring PayPal would add hundreds of millions of consumer accounts and the Venmo peer-to-peer platform to its merchant-focused infrastructure. Axios noted that it would represent a rare case of a venture-backed company buying an S&P 500 member.axios

No Certainty of a Deal

Despite the advanced stage of discussions, no agreement has been reached. PayPal's leadership must weigh whether a sale delivers more value to shareholders than completing its independent turnaround — a calculation that hinges on the final price Stripe and Advent are willing to pay.wsj+1