Key facts
- A consortium of Advent International and Stripe has withdrawn its bid to acquire PayPal.
- The consortium's offer was reportedly $60.50 per share, totaling over $53 billion.
- PayPal's board had previously rejected the offer, considering it undervalued the company.
- The consortium's bid was backed by approximately $50 billion in financing.
- Block, formerly known as Square, was part of early discussions but exited before the formal offer.
A consortium comprising private equity firm Advent International and payment processor Stripe has reportedly abandoned its pursuit of acquiring fintech giant PayPal. The decision marks the end of weeks of negotiations that began with an unsolicited offer of more than $53 billion.
The consortium's bid, which reportedly offered $60.50 per share, represented a premium of approximately 28% over PayPal's recent trading price. This offer was supported by about $50 billion in financing coordinated by JPMorgan and Morgan Stanley. Both Stripe and Advent were expected to hold equal stakes in the combined entity, with plans to maintain PayPal's existing structure.
PayPal's board, however, concluded that the $60.50-per-share offer undervalued the company. Directors reportedly sought a valuation closer to $70 per share. Despite initial rejections, talks continued into mid-August, exploring the possibility of an improved offer. Ultimately, the consortium decided not to increase its bid and withdrew from the acquisition attempt.
Earlier in the process, Block, formerly known as Square, was involved in preliminary discussions but exited before the formal offer was made. News of the acquisition attempt had previously caused PayPal's stock to surge by approximately 17%.