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- A consortium of Advent International and Stripe has withdrawn its bid to acquire PayPal.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 bid was supported by approximately $50 billion in financing.
- Block exited early discussions before the formal offer was made.
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, 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, reportedly seeking 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. PayPal shares slumped 13% in premarket trading on Friday after the report.