Payments giant Stripe and private equity firm Advent International submitted a joint proposal to acquire PayPal Holdings in a deal valued at more than $53 billion, according to people familiar with the matter. The consortium offered $60.50 per share earlier this month, representing a premium of roughly 28% over PayPal's recent closing price, and is backed by approximately $50 billion in committed financing from banks. The acquisition interest comes as PayPal reported first-quarter revenue of $8.35 billion and pursued AI-driven cost savings of around $1.5 billion over the next two to three years. PayPal stock closed at $47.37 before edging slightly higher to $47.40 in after-hours trading. Stripe, one of the world's most valuable privately held fintech companies, was valued at approximately $159 billion in a February tender offer.
Stripe and Advent Submit $53 Billion Acquisition Proposal for PayPal
Stripe and Advent International submitted a joint proposal to acquire PayPal Holdings earlier this month, according to people familiar with the matter. The consortium offered $60.50 per share, which is a premium of roughly 28% over PayPal's recent closing price. The proposal is backed by around $50 billion in committed financing from banks.
The latest approach follows an initial proposal that was made in early April. Sources said Stripe and Advent are still waiting for a response from PayPal's board. Under the proposed structure, the two firms would each own a 50% stake in PayPal rather than splitting up the business.
PayPal Reports $8.35 Billion Q1 Revenue and AI Cost Savings Plan
PayPal reported revenue of $8.35 billion during the first quarter. This beat analysts' expectations of $8.05 billion. Total payment volume increased 8% year over year on a currency-neutral basis to approximately $464 billion.
PayPal has been pursuing operational improvements through artificial intelligence. Management announced plans to streamline operations and reduce duplication in the organization, with expected cost savings of around $1.5 billion over the next two to three years. The company plans to reinvest those savings into future growth initiatives.
Stripe was valued at approximately $159 billion in a February tender offer, due to a sharp increase in investor confidence over the past year.
PayPal Stock Closes at $47.37 Amid Acquisition Reports
PayPal stock traded lower during Monday's regular session, and fell 0.59% to close at $47.37, according to Google Finance. Shares spent most of the day under pressure before recovering some losses in the afternoon. Sentiment improved after the closing bell, with the stock edging higher by around 0.06% in after-hours trading to $47.40.
FAQ
What is the reported acquisition offer for PayPal stock?
Stripe and Advent International submitted a joint proposal to acquire PayPal Holdings at $60.50 per share, valuing the deal at more than $53 billion. The offer represents a premium of roughly 28% over PayPal's recent closing price and is backed by approximately $50 billion in committed financing from banks.
How did PayPal perform in the first quarter?
PayPal reported revenue of $8.35 billion during the first quarter, beating analysts' expectations of $8.05 billion. Total payment volume increased 8% year over year on a currency-neutral basis to approximately $464 billion. The company also announced plans for AI-driven cost savings of around $1.5 billion over the next two to three years.
