Payments company Stripe and private equity firm Advent International have jointly offered to acquire PayPal Holdings Inc. for $60.50 per share, according to a report by Reuters. The proposed deal values the payments company at more than $53 billion.
The offer, submitted earlier this month, is backed by around $50 billion in committed financing from lenders. The bid represents a premium of about 28% over the price at which PayPal settled on Tuesday.
The report said the latest proposal follows an initial approach made in early April. However, PayPal has not yet responded to the offer, and Stripe and Advent are hoping to move discussions forward in the coming weeks, it added.
Under the reported proposal, Stripe and Advent would jointly own PayPal, with each holding an equal stake, rather than splitting up the company.
PayPal was founded in the late 1990s, and was among the pioneers of digital payments. However, the company has faced fierce competitors in recent years as consumers increasingly adopted alternative payment methods, and rivals such as Apple Pay and Google Pay have also expanded their market.
PayPal's market capitalisation peaked at around $360 billion in 2021, before dropping to nearly $36 billion this year. Over the past 12 months, the company's shares have lost more than 40%.
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After taking over as Chief Executive Officer in March this year, Enrique Lores launched a broad turnaround strategy aimed at simplifying PayPal's operations and refocusing the company on growth.
As part of that restructuring, PayPal reorganised its business into three divisions in April, covering Checkout, consumer financial services and Venmo and payments and crypto, whole annoiuncing a series of management change.
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