July 28 PayPal doubled down on its turnaround plan on Tuesday, raising its 2026 profit forecast and outlining cost-saving steps, as it looks to convince investors that it is worth more than the $53 billion takeover offer that analysts described as “low-ball”.
The payments company, once the crown jewel of American financial technology, received a $60.50-per-share bid from Stripe and private equity firm Advent International, Reuters reported earlier this month, citing sources
The offer is a fraction of the roughly $360 billion valuation PayPal commanded as a pandemic-era darling in 2021. The company’s board considers the offer inadequate. PayPal has struggled to regain its footing after a pandemic-driven surge in online shopping and digital payments faded, as consumers returned to brick-and-mortar stores.
Competition has also intensified as Apple and Google expanded their digital payment, integrating them into smartphone ecosystems and eroding PayPal’s advantage as a standalone payments platform, analysts said. THE ELUSIVE TURNAROUND Over the years, PayPal has responded to these pressures with sweeping changes such as management reshuffles, workforce reductions and a renewed focus on higher-margin products. Still, the market has largely reserved judgment, with investors waiting for clearer signs that it can regain market share and accelerate growth.