Stripe and Advent International in talks to acquire PayPal
What's the story
PayPal, the leading digital payments company, is said to be in talks with a consortium of investors, including Stripe and private equity firm Advent International for a sale. The Wall Street Journal reported that this comes after an earlier offer was turned down. In July, Stripe and Advent International had jointly offered to acquire PayPal for $60.50 per share, valuing the company at about $53 billion.
Market challenges
Proposed acquisition would mark a significant discount
The proposed acquisition would represent a massive 85% discount on PayPal's peak market value of nearly $360 billion in 2021.
The company has been struggling to compete with other payment providers such as Apple Pay and Google Pay.
Earlier this year, it also issued disappointing profit guidance for 2026.
Negotiation status
Negotiations continue between PayPal and investor group
Despite rejecting the initial offer, PayPal and the investor group have continued their negotiations.
The Wall Street Journal reported that a new deal could be finalized "in the coming weeks."
However, it remains unclear how much this new agreement would value PayPal at.
Following the news of potential talks, PayPal's shares rose nearly 1.8% in value.
Company profiles
Stripe's rise and PayPal's pioneering role in online payments
Founded in 2010 by brothers Patrick and John Collison, Stripe has grown into a major player in the online payment space.
The company is still privately held but is seen as a likely candidate for an IPO, with a market value of nearly $185 billion.
PayPal, on the other hand, was co-founded in 1998 by billionaire investor Peter Thiel. It pioneered peer-to-peer payments through online transactions.