Stripe and Advent submit reported $53 billion takeover offer for PayPal
How left and right are reading this
- Both agree
- A weakened PayPal has become a live takeover target, with a fully financed premium bid testing who will control a major payments platform.
- They split on
- Whether the story is about capital gaining leverage over essential payment infrastructure, or about markets repricing an underperforming company through a credible offer.
The Facts
- Stripe and Advent International have reportedly made a joint takeover offer for PayPal.
- The reported offer price is $60.50 per PayPal share, valuing the company at more than $53 billion.
- The reported bid represents about a 28% premium to PayPal's Tuesday closing share price.
- Reports say the offer is backed by about $50 billion in bank financing.
- Stripe and Advent are reported to plan equal ownership of PayPal if a deal is completed.
- Multiple reports say the bidders first contacted PayPal in early April and had not received a response from the company at the time of publication.
- News of the reported offer pushed PayPal shares sharply higher in early trading or premarket trading.
- The reported approach comes as PayPal faces stronger competition in digital payments and a reduced market valuation compared with earlier years.
Context
Who is behind the reported bid for PayPal?
The reported bidders are Stripe, a payments company, and Advent International, a private equity firm. Multiple reports say they submitted the offer jointly and planned equal ownership if a deal went through Handelsblatt,WinFuture.de.
Why did the market react so strongly?
Reports said the offer price of $60.50 a share was about 28% above PayPal's Tuesday close, which typically raises expectations of a possible acquisition premium. Several outlets also reported that PayPal shares jumped sharply after the news T-online.de,Handelsblatt.
Facts first. Then every angle.
The day’s biggest stories in one short brief — the facts everyone agrees on, then the competing values behind the headlines. Free in your inbox.
View all 45 sources
Wire services (1)
Independent coverage (44)
About these frames
See this differently than someone you know would? Two ways to keep it going.
The dial works on any URL — paste an article you read elsewhere this week.