PayPal board deems Stripe-Advent takeover proposal too low as talks continue
PayPal’s board believes a $53bn takeover proposal from payments rival Stripe and private equity firm Advent International undervalues the business, according to a report by Reuters citing unnamed sources familiar with the matter.
The board has yet to formally respond to the unsolicited offer but is assessing both the proposal and the possibility that alternative bidders could emerge alongside management’s existing turnaround strategy.
Sources said directors believe the consortium’s offer of $60.50 per share, while representing a premium to PayPal’s recent trading price, does not fully reflect the company’s long-term value if its operational recovery succeeds. PayPal shares closed at $56.73 on Thursday, above the offer price, signalling that investors may also expect either an improved bid or competing interest.
Beyond valuation, the board is also considering execution risks, including the certainty of financing, potential antitrust scrutiny and the length of time required to complete a transaction of this scale.
The consortium has assembled a substantial financing package to support the acquisition. Sources said JPMorgan and Morgan Stanley have committed approximately $50bn of financing, while Stripe and Advent would contribute around $17bn in equity, with each partner taking an equal ownership stake in the combined business.
To address possible regulatory concerns, the bidders have also explored structural remedies. One option under consideration would involve separating PayPal’s Braintree payments processing business or other assets and transferring them to Advent, where they could potentially be combined with the firm’s existing payments investments, including Nuvei.
Stripe and Advent remain the leading contenders for PayPal despite the board’s reservations, and discussions are expected to continue. Earlier in the process, Block participated in the consortium before withdrawing ahead of the latest proposal.
For Advent, the transaction would represent one of the largest private equity-backed technology acquisitions on record and would further expand its long-standing presence in the global payments sector. The firm has previously invested in businesses including Worldpay, Vantiv and Nuvei, giving it significant experience in payments infrastructure.
The proposed acquisition also highlights the increasing willingness of private equity firms to partner with strategic buyers on mega-deals that would be difficult to finance independently. Such partnerships can provide additional equity capital while also offering greater flexibility in addressing regulatory concerns through asset carve-outs or alternative ownership structures.
PayPal is scheduled to report quarterly earnings on 28 July, with investors expected to focus on progress in its turnaround strategy and the performance of its core checkout business as takeover discussions continue.
