Once a $360 Billion Giant, PayPal Draws $53 Billion Bid

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Once a $360 Billion Giant, PayPal Draws $53 Billion Bid Renato Neves, CFA Wed, July 15, 2026 at 8:27 AM EDT 1 min read PYPL This article first appeared on GuruFocus . PayPal Holdings ( NASDAQ:PYPL ) rose 15.25% in premarket trading after Reuters reported that Stripe and private equity firm Advent International made a joint offer to buy the company for $60.50 a share, valuing it at more than $53 billion. The bid, submitted earlier this month, carries roughly a 28% premium to Tuesday's close and is backed by about $50 billion in committed bank financing, people familiar with the matter said. Stripe, a privately held payments processor last valued at $159 billion, would own PayPal jointly with Advent at an equal stake. The approach targets a company that has fallen a long way. PayPal's market value peaked near $360 billion in 2021 and dropped to about $36 billion this year, a decline of more than 40% over the past twelve months as Apple ( NASDAQ:AAPL ) Pay, Google ( NASDAQ:GOOGL ) Pay, and other rivals took share. CEO Enrique Lores, in the job since March, has been splitting operations into checkout, Venmo, and payments and crypto units to sharpen the turnaround. PayPal, Stripe, and Advent all declined to comment. Stripe and Advent haven't received a response from PayPal and want to advance talks in the coming weeks, though the sources cautioned a deal isn't certain.

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Stripe and Advent International have proposed to acquire PayPal for $60.50 per share, valuing the company at $53 billion. This represents a premium of approximately 28% over the previous day's closing price, causing PYPL shares to jump 15.25% in pre-market trading. As the company's valuation has fallen from a peak of $360 billion to $36 billion, investors are focused on whether this acquisition will reshape the payment industry landscape.

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The acquisition bid highlights the significant valuation correction PayPal has faced in recent years. While the synergy between Stripe and PayPal could create a dominant payment powerhouse, challenges remain regarding the integration of legacy systems and the intense competition from tech giants. The market is assessing whether this merger can revitalize the platform's stagnant growth and restore its former market leadership.

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