PayPal stocks fell as much as 16% in premarket trading on Friday after Bloomberg reported on Thursday night that Stripe and Advent International had abandoned their $53 billion pursuit of the payments company, which had helped propel its shares higher since the news broke in mid-July.
SAN JOSE, CALIFORNIA – FEBRUARY 02: A sign is posted in front of PayPal headquarters on February 02, 2022 in San Jose, California. (Photo by Justin Sullivan/Getty Images)
Getty ImagesKey Facts
PayPal’s stock tumbled as much as 16% on Friday, trading around $53.74 just after the markets opened after Thursday’s $61.47 close.
The stock had gained nearly 30% since reports of the takeover pursuit surfaced in July, with a market value of about $52.6 billion.
Stripe and private-equity firm Advent International had reportedly offered $60.50 per share for PayPal, valuing the company at more than $53 billion.
Bloomberg reported on Thursday night that Stripe and Advent are no longer pursuing the deal, according to people familiar with the matter.
Key Background
PayPal has struggled with slowing growth and competition from Apple Pay, Google Pay and other payment platforms. In response, the company in recent years has made changes to its management, reduced its workforce and cut costs in an attempt to revive profitability. The stock had climbed nearly 30% since news of Stripe and Advent’s efforts broke in July, and is now trading well below the $60.50 reported per-share offer, which valued PayPal at over $53 billion. The Wall Street Journal had previously reported that PayPal thought the offer was insufficient, and the parties were negotiating the price.
Big Number
$356 billion. That was Paypal’s approximate peak market valuation during the pandemic-driven stock boom in 2021, compared with the roughly $53 billion reported takeover offer.
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