PayPal Holdings is reviewing a $53 billion takeover offer from Stripe and Advent International. The proposal values PayPal at $60.50 per share, but the board considers that price too low. Directors are now deciding whether the bid justifies formal talks or a stronger demand.
The review comes as PayPal faces slower growth, tougher competition, and repeated leadership changes. The company once carried a market value near $360 billion during the 2021 digital commerce boom.
Its valuation has since fallen sharply as rivals gained ground in payments and digital wallets. Meanwhile, investors are watching whether a revised offer could unlock more value from Venmo and PayPal’s checkout operations. They are also assessing its large global consumer network.
People familiar with the talks said the board does not support the offer in its current form. Some directors also question whether PayPal should enter negotiations at $60.50 per share. They believe the latest turnaround plan could produce a higher valuation.
Stripe and Advent may have room to improve their proposal. The group reportedly secured $17 billion in equity commitments. It also arranged about $50 billion in bank financing. That funding gives the bidders capacity to raise the price.
PayPal has not commented on the takeover discussions. Chief Executive Enrique Lores also has not addressed the proposal publicly. He took charge in March after the company replaced Alex Chriss and began another turnaround effort.
PayPal built its name through online checkout and digital payments. However, Apple, Google, Samsung, Stripe, and Affirm have added new payment tools and banking services. PayPal moved more slowly into mobile payments, digital banking, and artificial intelligence.
Apple Pay now leads PayPal in the United States digital wallet market. PYMNTS Intelligence said Apple Pay held a ten-point advantage last year. PayPal also trails several rivals in agentic commerce, where software can complete purchases for consumers.
Growth has weakened across Venmo and other key services. Buy now, pay later products also have not delivered the expected momentum. Meanwhile, PayPal’s customer base has flattened, so management now focuses more on earnings from existing users.
The company admitted that execution had missed board expectations. In February, it said, ‘the pace of change and execution was not in line’ with directors’ targets. That statement came as PayPal announced another leadership change.
PayPal’s upcoming quarterly results may influence the board and the bidders. Weak results could increase pressure for negotiations. Stronger figures could support the board’s push for a higher price and improve its bargaining position.
Analysts see few likely rival bidders. Morgan Stanley called the Stripe and Advent proposal the ‘most credible path to value realisation.’ The bank pointed to strong wallet competition and PayPal’s mature customer base.
Deal advisers are also studying PayPal’s separate businesses. These include Venmo, merchant checkout services, and more than 400 million consumer accounts. They are assessing whether those assets carry more value together or through separate sales.
The board must now compare the offer with its turnaround targets. Stripe and Advent must decide whether a higher bid can win support. PayPal’s earnings report will provide the next major test for both sides.
Also Read: Stripe Valuation Jumps 74% to $159 Billion in Major Growth Milestone