Home / Business and Economy / Stripe, Advent Abandon $53B PayPal Takeover
Stripe, Advent Abandon $53B PayPal Takeover
28 Aug
Summary
- Stripe and Advent International withdrew their $53 billion bid for PayPal.
- PayPal's board rejected the offer, deeming it insufficient.
- PayPal shares dropped over 12% following the abandoned takeover news.
A consortium led by Stripe and Advent International has reportedly withdrawn its $53 billion bid to acquire PayPal Holdings Inc. This development caused PayPal's stock to fall sharply, dropping over 12% in overnight trading and erasing recent gains. The offer, which was reportedly $60.50 per share, was rejected by PayPal's board.
Sources indicate the board considered the bid insufficient and flagged potential regulatory and financing challenges. Despite the stock's significant decline, some market analysts support the board's decision. They argue that rejecting the 'inadequate offer' protects substantial future shareholder value and encourages PayPal to continue its turnaround strategy as an independent entity.
PayPal is navigating a challenging period, with its market value significantly reduced from its 2021 peak amid intense competition. CEO Enrique Lores initiated a restructuring into three operational units in March to streamline focus and drive long-term growth.
