PayPal shares surge 28% premarket after report of a $53 billion acquisition offer from Stripe and Advent International.
PayPal (PYPL) shares jumped 28% in premarket trading after a report that Stripe and private equity firm Advent International proposed a $60.50 per share buyout. The deal would value PayPal at over $53 billion, backed by $50 billion in committed financing.
PayPal’s stock has struggled this year, down 18% year-to-date and 35% lower than a year ago, amid intense competition from Apple Pay, Block, and buy-now-pay-later firms. The company has not revisited its 2021 peak of $310 per share.
Investor Michael Burry, who holds a stake in PayPal, called the offer price too low, suggesting a higher bid may be necessary to reflect the company’s intrinsic value.