Shares of PayPal Holdings Inc (NASDAQ:PYPL) surged 14.86% in pre-market trading on Wednesday following a report that Stripe and Advent International have proposed a joint acquisition of the digital payments firm in a deal valued at over $53 billion.
The proposal for $60.50 per share, backed by close to $50 billion in committed financing from banks, was submitted earlier this month, Reuters reported. That implies a 28% premium to PayPal’s closing share price on Tuesday,
The proposed deal would see Stripe and Advent jointly owning PayPal, each holding an equal stake, as per the report.
Stripe, Advent International and PayPal did not immediately respond to Benzinga‘s requests for comment.
Merger Could Reshape Payments
Stripe was reportedly exploring a potential acquisition of PayPal in April, with discussions still in the early stages. Investor sentiment remained fragile following PayPal’s CEO transition from Alex Chriss to HP’s Enrique Lores, prompting the company to explore strategic alternatives amid renewed takeover interest.
A potential deal could unite two major payment networks, combining Stripe’s Bridge stablecoin infrastructure with PayPal’s consumer-facing (PYUSD/USD) stablecoin. The merger would create an integrated platform spanning both stablecoin issuance and consumer distribution.
Stablecoin adoption is moving further into mainstream finance, with Stripe, Visa Inc. (NYSE: V), Bank of New York Mellon Corp. (NASDAQ: BNY), BlackRock Inc. (NYSE: BLK), Coinbase Global Inc. (NASDAQ: COIN), Alphabet Inc.(NASDAQ: GOOGL) and more than 100 other firms backing Open Standard, a new venture that will launch the U.S. dollar-backed Open USD stablecoin later this year. Other supporters include Klarna and Chime Financial.
PayPal Stock Faces Pressure, Value Case Emerges
This acquisition proposal comes amid a challenging period for PayPal. Its stock has been on a steady decline over the past year, with its share price sliding from a peak of $78.22 to $47.37.
Despite these challenges, some investors see potential in PayPal. Notably, investor Michael Burry has been building his position in the fintech giant.
Burry attributed the company’s recent market underperformance to slowing revenue growth, changing profitability profiles, and CEO turnover. However, he believes PayPal, a strong brand, is undervalued, noting that despite years of negative market sentiment, the company has yet to justify the pessimism.
Benzinga’s Edge Rankings place PayPal in the 80th percentile for value and the 46th percentile for growth, reflecting its strong performance in both areas. Benzinga’s screener allows you to compare PYPL’s performance with its peers.
PYPL Price Action: On a year-to-date basis, PYPL stock declined 18.52%, as per Benzinga Pro. On Tuesday, it fell 0.59% to close at $47.37.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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