PayPal shares dropped in premarket trading on Friday after Bloomberg News reported that a Stripe-led consortium has abandoned its pursuit of the payments company. The withdrawal ends months of takeover speculation built around a $60.50-a-share offer that had valued PayPal at more than $53 billion.
PayPal Holdings shares fell 17% in premarket action on Friday after Bloomberg News reported that a consortium led by payments rival Stripe and private-equity firm Advent International has abandoned plans to acquire the company. The report cited anonymous sources. Advent declined to comment, and PayPal and Stripe didn't immediately respond to requests for comment.
Consortium had offered $60.50 a share
Reuters had reported in July that the consortium came up with an acquisition offer of $60.50 a share. That valued PayPal at more than $53 billion. PayPal had viewed that offer as insufficient, and the two sides had been discussing a higher price, the Wall Street Journal reported in August. Michael Burry, the former hedge-fund manager depicted in "The Big Short," said last month that PayPal's true intrinsic value was between $75 and $115 a share and that a winning bid should be around $100 a share.
Stock still down sharply from its pandemic peak
PayPal's stock had gained 37% in the three months through Thursday's close, but it remains down 82% from its peak reached in July 2021. The company has faced a more competitive payment-technology market since its pandemic-era highs, as Apple Pay has made inroads with shoppers and browsers now let users store payment credentials directly online. William Blair analyst Andrew Jeffrey wrote last month that PayPal's "value proposition and tech stack lag disruptive competitors."
Earnings beat came ahead of the reported walkaway
The takeover report follows PayPal's latest quarterly update, in which the company posted second-quarter 2026 revenue of $8.7 billion and total payment volume of $486.4 billion and raised its full-year non-GAAP earnings guidance. CEO Enrique Lores didn't comment directly on the Stripe reports but told investors the company wouldn't dismiss an acquisition if it created superior value for shareholders. Lores joined PayPal from HP in March and has since tried to refocus the company on innovation.
Sources: MarketWatch, Crypto Daily
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