Stripe and private equity firm Advent International have submitted a joint takeover offer to acquire PayPal Holdings Inc. in a cash transaction valued at $53.4 billion, according to financial reporting confirmed by CNBC. The proposal offers $60.50 per share for the payments firm, triggering a 17% surge in PayPal’s stock price.
The buyout bid arrives as PayPal navigates intensifying competition in the financial payments landscape. Under the terms outlined by individuals familiar with the confidential negotiations, Stripe and Advent would jointly own PayPal with equal equity stakes, backed by roughly $50 billion in committed bank financing and an additional $17 billion in equity contributions involving Stripe, Advent, and Block.
PayPal’s board of directors is scheduled to meet as soon as July 20 to review the proposal. Meanwhile, executives at PayPal, Stripe, and Advent International have declined public comment on the ongoing discussions.
The Financial Structure of the Takeover Bid
The $53.4 billion acquisition proposal represents a 28% premium to PayPal’s closing share price on Tuesday. According to reports first published by Reuters, the $60.50 per share cash bid is designed to secure liquidity for investors.
Stripe, which carries a private valuation of approximately $159 billion, previously explored potential acquisition avenues involving PayPal in February and was in early discussions at the time. The current joint venture with Advent International includes Stripe, Advent, and Block contributing $17 billion in equity for the offer.
PayPal’s Turnaround Struggles and Leadership Changes
The takeover approach comes as PayPal attempts to engineer a corporate turnaround. At the start of the year, the company issued disappointing profit guidance for 2026, with its full-year adjusted profit expected to range between a low-single-digit percentage decline.
The company replaced its former CEO, Alex Chriss, this year. PayPal’s board named Enrique Lores as its new president and CEO.
Despite heavy capital investments aimed at accelerating revenue growth, Citi analysts noted in a report on July 7 that investors are sceptical after “previous turnaround efforts failed to reverse the company’s slowdown.”
Market Reaction and Next Governance Checkpoints
Wall Street responded to the acquisition news, driving PayPal’s stock up 17%.
PayPal’s board of directors is slated to convene to formally evaluate the $60.50 per share cash proposal. Representatives for PayPal, Stripe, and Advent have declined to comment on the report.