PayPal shares tumble on report Advent-Stripe consortium drops buyout bid

The consortium made a $60.50-per-share, or about $53 billion, bid for the payments company that was once seen as the crown jewel of American financial technology, Reuters reported in July, citing sources.

The offer was a fraction of the roughly $360 billion valuation PayPal commanded at the height of the pandemic-era boom in 2021. The ⁠company's board considered the initial offer inadequate, sources have said previously.

PayPal has struggled to regain its footing as the pandemic-fueled surge in online shopping and digital payments faded and customers returned to brick-and-mortar stores.

Intensifying competition from tech giants Apple and Google, which have expanded their digital payment services by integrating them into smartphone ecosystems, eroded the company's core market share.

Over the years, PayPal has responded to these pressures with sweeping changes, including management reshuffles, workforce reductions and a renewed focus on higher-margin products.

Last month, the company doubled down on its turnaround plan, ‌raising ⁠its 2026 profit forecast and outlining cost-saving steps under newly appointed CEO Enrique Lores.

"Given that backdrop, PayPal has a credible argument that $53 billion does not fully reflect the value of its platform, brand and user base," said Troy Hooper, Co-Head of ECM US at Mergermarket.

"The company does not necessarily ⁠need to demonstrate a successful turnaround before demanding a higher price. That said, sustaining that position will ultimately require management to prove the turnaround can translate into stronger growth and earnings."

The company had a ⁠market capitalization of about $53 billion as of last close, roughly in line with the reported offer price. The shares have gained nearly 30% since Reuters reported on the offer.

In ⁠PayPal's recent earnings call, Lores did not comment on the takeover speculation but said the company would carefully consider any opportunity or strategic option that it believes could create superior value for shareholders.