● Covered by 2 sources · 2 reportsHigh impact2 neutral
Stripe and Advent reportedly in renewed talks to acquire PayPal
Key points
- Stripe and Advent are reportedly in renewed acquisition talks for PayPal.
- An initial offer of $60.50 per share, valuing PayPal at $53 billion, was made in July.
- PayPal CEO Enrique Lores is implementing a turnaround plan.
- The plan includes restructuring, cost-saving, and a 20% workforce reduction.
- A deal could be announced in the coming weeks.
- The July offer was not enough for PayPal to sell.
- PayPal was trading at historic lows before the July offer.
- PayPal was worth around $40 billion at the time of the July offer.
- PayPal's highest market value was $320 billion during the COVID pandemic.
- Stripe and Advent are discussing a potentially higher price per share.
- Stripe and Advent would each hold an equal stake as joint owners.
- Stripe and Advent have no plans to break up PayPal.
- Stripe would process around $3.7 trillion in payments a year.
Acquisition Talks Resume
Stripe and private equity firm Advent are reportedly in ongoing negotiations to acquire PayPal. This follows an initial offer in July for $60.50 per share, which would have valued PayPal at $53 billion. PayPal initially declined the offer, but discussions have reportedly continued.
PayPal's Turnaround Efforts
The renewed acquisition talks coincide with PayPal CEO Enrique Lores' efforts to implement a turnaround plan for the company. Lores, who joined in March, initiated an executive shuffle and split the business into three operating models: checkout solutions and PayPal, consumer financial services (including Venmo), and payment services and crypto. He also stated PayPal would recommit to its fundamentals and become a technology company again.
Cost-Saving Measures
As part of the turnaround, PayPal plans to implement cost-saving measures, including a projected 20% reduction in its workforce over the next two to three years. These changes are occurring as PayPal addresses challenges following a period of growth during the pandemic's e-commerce boom.
Updates
- A deal could be announced in the coming weeks.
- The July offer was not enough for PayPal to sell.
- PayPal was trading at historic lows before the July offer.
- PayPal was worth around $40 billion at the time of the July offer.
- PayPal's highest market value was $320 billion during the COVID pandemic.
- Stripe and Advent are discussing a potentially higher price per share.
- Stripe and Advent would each hold an equal stake as joint owners.
- Stripe and Advent have no plans to break up PayPal.
- Stripe would process around $3.7 trillion in payments a year.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Stripe and private equity firm Advent International are reportedly in discussions to acquire PayPal, with a potential deal announcement in the coming weeks. This acquisition would significantly expand Stripe's market presence, making it one of the largest online payment companies globally and reducing its reliance on major card networks.
Stripe and private equity firm Advent are reportedly in renewed negotiations to acquire PayPal, following an initial offer in July that PayPal rejected. These discussions come as PayPal's CEO, Enrique Lores, implements a turnaround strategy for the company.