Why PayPal Shares Have Surged

PayPal Holdings Inc. (NASDAQ: PYPL) shares jumped as much as 21% in premarket trading on Wednesday after Reuters reported that payments giant Stripe and private equity firm Advent International have made a joint takeover offer for the company, valuing it at more than $53 billion.

According to sources familiar with the matter, the offer — submitted earlier this month — proposes $60.50 per share, representing roughly a 28% premium to PayPal’s Tuesday closing price.

The bid is reportedly backed by about $50 billion in committed financing from banks. Under the terms described, Stripe and Advent would each take an equal stake in PayPal rather than break the company apart. PayPal, Stripe and Advent all declined to comment.

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The approach follows an earlier overture made in early April, and the two suitors are said to be pushing for a response from PayPal’s board in the coming weeks, though there is no guarantee a deal will materialize.

The news comes as PayPal works through a broader turnaround under CEO Enrique Lores, who took the helm in March and has since split the company into three units — checkout, Venmo/consumer finance, and payments and crypto — while simplifying operations and pursuing AI-driven cost savings targeted at $1.5 billion over two to three years.

PayPal’s market value, which peaked near $360 billion in 2021, had fallen to roughly $36 billion earlier this year amid slowing growth and stiff competition from Apple Pay, Google Pay and other rivals. A potential deal would mark one of the largest fintech buyouts on record and add to a wave of consolidation sweeping the global payments industry.