Advent, Stripe consortium is said to drop pursuit of PayPal, Bloomberg News reports
- A consortium of payment processor Stripe and private equity firm Advent International has abandoned its pursuit of PayPal Holdings, according to reports on Thursday. The group is no longer negotiating a deal for the fintech pioneer.
- PayPal has struggled to modernize payment technologies as rivals like Apple Pay and Google Pay seized market share. Founded in the 1990s, the company faced management attempts to revive its flagging share price amid slowing growth.
- Stripe and Advent previously offered more than $53 billion for the company, though the board reportedly deemed the bid inadequate. This valuation is a fraction of the roughly $360 billion PayPal commanded as a pandemic-era darling in 2021.
- PayPal CEO Enrique Lores, who replaced Alex Chriss in March, is leading a turnaround to sharpen focus on growth. The company split its operations into three units covering checkout, Venmo, and payments, assigning each specific revenue targets.
- While the consortium could opt to return later, recent share performance has buoyed PayPal, with stock jumping more than 40 per cent this quarter. The company maintains a market value of about $52.6 billion navigating its independent strategy.
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PayPal sank 12.7%, after it was reported that a consortium that included Stripe and Advent International gave up negotiations to acquire the payment company. The session was marked by Kevin Warsh's speech at Jackson Hole's symposium.
Why PayPal Stock Just Crashed
PayPal was for sale. Now it's not.
PayPal shares crash 13% on reports Advent-Stripe consortium walks away from bid
PayPal shares fell 13% after Advent International and Stripe reportedly abandoned plans to acquire the payments giant. The consortium had offered $60.50 per share, valuing PayPal at about $53 billion. Valuation concerns and regulatory hurdles reportedly derailed the deal, adding pressure to the company's ongoing turnaround efforts.
PayPal Stock Falls 15% After Buyout Reportedly Falls Through
Topline PayPal stocks fell as much as 16% in premarket trading on Friday after Bloomberg reported on Thursday night that Stripe and Advent International had abandoned their $53 billion pursuit of the payments company, which had helped propel its shares higher since the news broke in mid-July. Key Facts PayPal’s stock tumbled as much as 16% on Friday, trading around $53.74 just after the markets opened after Thursday’s $61.47 close. The stock h…
PayPal Sinks 15% as Stripe and Advent Abandon $50B Buyout, Affirm Soars 13% on 'Most Profitable Quarter Ever'
A collapsed $50 billion buyout sent shockwaves through the buy-now-pay-later sector Friday morning, splitting two of digital payments' biggest names into opposite directions while the broader financials market barely flinched.
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