Paypal Shares Tank 16% Pre-Market As Advent, Strike Drop $50-Billion Takeover Bid

Shares of PayPal tanked as much as 16% to $61.37 before the opening bell on Friday, August 28 after Stripe and Advent International reportedly dropped their plan to acquire the company.

Global private equity and buyout firm Advent and payment processor Stripe will not pursue their takeover bid of PayPal Holdings, a potential bid, which would have been one of the biggest-ever leveraged buyouts, Bloomberg News reported citing people familiar with the matter.  These companies had earlier offered more than $50 billion for the company, they added.

PayPal, an early mover in digital payments was founded in the late 1990s. Since then, the company has struggled with modernising its payment technologies as peers such as Apple and Alphabet have acquired significant market share.

ALSO READ: PayPal On Sale As Stripe, Advent Make Joint Bid For $53 Billion, Says Report

The news portal previously reported that Stripe was considering to acquire of parts or entire share PayPal after a slump in stock wiped out majority of its valuation. This bid, along with second-quarter earnings that beat estimates, helping the stock to recover. PayPal shares have surged more than 40% in the quarter, with the  company's market value at about $52.6 billion.

The California-based company removed former CEO Alex Chriss this year and replaced him with Enrique Lores, who took over the position in March, the report noted. 

Wall Street Journal earlier reported that PayPal found Advent and Stripe's initial bid insufficient and the two sides and are in talks for a potential higher price. 
 

ALSO READ: PayPal Appoints Enrique Lores As CEO, Share Fall After Earnings Miss Analyst Projections

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.