Stripe and Advent International submit $53 billion takeover bid for PayPal
PayPal shares surged 17.2% on the news, but analysts warn the initial offer may be rejected as negotiations continue.
Privately held fintech company Stripe, in partnership with private equity firm Advent International, has submitted an acquisition offer for PayPal Holdings valued at more than $53 billion. The proposal values PayPal at $60.50 per share, representing a premium of approximately 28% over its closing price on Tuesday, July 14. Under the proposal, Stripe and Advent would jointly own PayPal with equal stakes, creating an entity capable of processing nearly $3.7 trillion in annual payment volume. Banks have committed nearly $50 billion in financing to support the transaction.
PayPal shares rose 17.2% following the report on Wednesday, July 15, as investors reacted to the potential deal. However, analysts caution that negotiations are ongoing and the initial bid may be rejected or increased. PayPal’s new leadership is expected to reject the initial bid as low, with William Blair analyst Andrew Jeffrey suggesting the offer could rise to as much as $70 per share.
The offer arrives at a pivotal moment for PayPal, which has struggled to maintain its competitive edge in an increasingly crowded digital payments market. The company recently reported first-quarter revenue growth of 7.2% year-over-year to $8.35 billion, beating analyst estimates of $8.05 billion. Adjusted earnings per share for the quarter increased marginally to $1.34, surpassing the expected $1.27.
Despite the top-line beat, total payment volume rose 11% to $464 billion during the quarter, though branded checkout volume grew only 2% on a currency-neutral basis. Management forecasts adjusted EPS to decline by around 9% year-over-year in the second quarter of fiscal 2026 due to higher investment costs and restructuring expenses. PayPal generated $1.7 billion in adjusted free cash flow in the first quarter and repurchased $1.5 billion of shares.
Analyst sentiment remains mixed following the rally. Mizuho’s Dan Dolev downgraded the stock to "Neutral" with a $50 price target, while Clear Street’s Owen Lau maintained a "Hold" rating with a $61 target. The overall Wall Street rating for PayPal is "Hold", with an average price target of $48.29.
