Payments technology company Stripe and private equity firm Advent International have submitted a joint offer to acquire PayPal Holdings in a deal valued at more than $53 billion, according to two people familiar with the matter.
The proposal values PayPal at $60.50 per share, representing a premium of about 28% over the company’s closing share price on Tuesday. One of the sources said the offer is supported by approximately $50 billion in committed financing from banks, providing significant backing for the proposed acquisition.
The sources, who requested anonymity because the discussions are confidential, said the offer was submitted earlier this month. PayPal, Stripe and Advent International declined to comment on the reports.
According to the people familiar with the discussions, the latest proposal follows an initial approach made in early April. They said Stripe and Advent have yet to receive a formal response from PayPal and are hoping to move negotiations forward over the coming weeks.
The proposal would see Stripe and Advent jointly own PayPal, with each party holding an equal stake in the company. The sources said there are currently no plans to split up the business if the transaction proceeds. They also cautioned that there is no guarantee the talks will result in a final agreement.
PayPal, founded in the late 1990s, played a major role in the early growth of digital payments and online commerce. Over the past several years, however, the company has struggled to maintain its position as competition has intensified across the payments industry.
The rapid expansion of alternative payment services, including Apple Pay and Google Pay, has increased pressure on PayPal’s core business. The company has also faced slowing revenue growth following the surge in online shopping during the COVID-19 pandemic.
PayPal’s market value reached a peak of around $360 billion in 2021 but has since fallen sharply. Its market capitalisation dropped to about $36 billion earlier this year, and the company’s shares have lost more than 40% of their value over the past 12 months.
The acquisition proposal comes as PayPal works to reshape its business under new leadership. Enrique Lores, who became chief executive in March, has launched a broad restructuring plan aimed at simplifying operations and restoring growth.
In April, PayPal reorganised its business into three main divisions covering checkout services, consumer financial products including Venmo, and payments and cryptocurrency operations. The company also announced a series of senior management changes as part of its turnaround strategy.
If completed, the acquisition would rank among the largest deals in the financial technology sector in recent years and would combine one of the world’s leading online payment platforms with one of its fastest-growing private fintech companies, creating a stronger competitor in the increasingly crowded global digital payments market.
