PayPal and Stripe are in active talks after the board rejected a $53 billion July offer. A deal could come within weeks, the WSJ reports.
Alpha Score of 61 reflects moderate overall profile with moderate momentum, strong value, moderate quality, moderate sentiment.
PayPal Holdings is in active negotiations with a group that includes Stripe and Advent International, potentially at a price above the one the companies offered in July, The Wall Street Journal reported Friday, citing unnamed sources.
The two sides have been talking since July, when Stripe and Advent proposed buying the payments firm at a valuation of $53 billion. PayPal’s board later rejected that offer as insufficient, the report said. A deal could come together within weeks, though there is no guarantee the parties will reach an agreement.
PayPal’s shares rose 1.8% after the WSJ report, pushing the company’s market capitalization close to $53 billion. That matches the July proposal’s headline number, which had been priced at a $40 billion market value before the talks became public.
A PayPal spokesperson declined to comment. Stripe said it does not comment on rumors. Advent did not respond to requests for comment.
The negotiations follow a turbulent year for PayPal. In January the company ousted CEO Alex Chriss and named HP’s Enrique Lores as his replacement, starting March. PYMNTS CEO Karen Webster wrote at the time that the move was unsurprising given PayPal’s market cap had barely moved in a decade. “The big question now is why Lores and why now,” Webster said. “A look at his resume might hold some clues. He led the separation of HP into two business units in 2014. Could that be PayPal’s next move?”
Stripe’s interest in PayPal first surfaced in February, reported by Bloomberg and others. The July joint offer from Stripe and Advent valued the company at $53 billion. The board’s decision to reject it opened the door for negotiations over price, deal structure and regulatory risk.
A sale would reshape the payments landscape, combining two of the largest independent processors. Stripe, privately valued at $65 billion, would gain PayPal’s 435 million active consumer accounts. Advent, a buyout firm with $90 billion in assets, would bring deep pockets and M&A expertise. The regulatory path is uncertain – the deal would face antitrust scrutiny in the U.S. and Europe.
The next catalyst is a formal bid. If one arrives at a price the board accepts, the deal could close before year-end. If talks collapse, PayPal’s stock likely gives back the premium.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.