PayPal (NASDAQ:PYPL) may be in play, as indicated by a report claiming that Stripe and Advent have joined to acquire the firm. Reuters claims that the deal would be at $60.50 a share, or $53 billion. A meeting between the parties is apparently scheduled for next week.
Advent International is a private equity firm that has backed Fintechs. Stripe, a private firm, is a top payments and e-commerce enabler.
Stripe helps merchants in over 50 countries to accept and process payments. More than 100 Stripe customers process $1 billion or more yearly. Over 5 million websites use Stripe, which has a market share of over 22%.
PayPal is currently trading at around $56.66, up about 20% from yesterday’s close.
The deal is said to have already cobbled together $50 billion in bank financing.
The deal has legs because PayPal has struggled with many competitors entering a market that it was once dominant. In 2021, PayPal shares topped $290, indicating a significant decline in valuation since then.
Created to facilitate payments and transfers, PayPal today is a multifaceted Fintech providing a litany of financial services, including credit, cards, and infrastructure.
In 2020, PayPal reported around 1 million users. Today, PayPal reports over 439 million active accounts and has facilitated approximately $1.79 trillion in payment volume across 25 billion transactions. PayPal recently declared a new global goal to support 25 million people and small businesses. To date, PayPal has provided access to more than $30 billion in capital through more than 1.4 million loans and cash advances to over 420,000 business accounts globally.
PayPal’s Q2 report is scheduled for July 28th, and an announcement could come prior to the event.