Stripe, Advent bid for $53 billion to acquire Pay Pal
Payment start-up Stripe and private equity firm Advent International have jointly launched an acquisition offer and plan to acquire PayPal, a company listed on the New York Stock Exchange. The transaction values PayPal at approximately US$53 billion. Stripe, run by brothers Patrick and John Collison, made an offer this month for $60.50 per share, two people familiar with the matter said. People familiar with the matter said that the offer has shrunk significantly compared to PayPal's stock price valuation a year ago, and there is currently no sign that PayPal has accepted the acquisition invitation. According to people familiar with the matter, the tender offer price is approximately 28% higher than PayPal's closing price on Tuesday, and the transaction is supported by US$50 billion in bank commitment financing. This acquisition proposal is not the first time that the two institutions have expressed interest in acquisitions. Relevant people familiar with this offer reminded that PayPal is still unwilling to negotiate with the two acquirers at this stage. People familiar with the matter added that since the new CEO Enrique Lores is promoting the company's loss-making reforms, the possibility of reaching a deal at the current quotation is low. The online payments giant's shares are down 19% this year, after trading in the $70 range a year ago. Affected by the slowdown in business growth, Competing products such as Pay, Shop Pay, and Klarna continue to seize the payment track. The stock has plummeted 84% from its historical high in 2021. PayPal and Advent both declined to comment, and Stripe did not respond to a request for comment. The acquisition by Stripe and Advent was first disclosed by Reuters.