PayPal\u00a0Holdings Inc<\/a>\u00a0for $60.50 per share, in a deal that would value the payments company at\u00a0more\u00a0than\u00a0$53\u00a0billion, two people familiar with the matter said.<\/p>\nThe\u00a0offer, submitted earlier this month, is backed by about $50\u00a0billion\u00a0in committed financing from banks, the people said, and represents around a 28% premium to\u00a0PayPal’s closing share price on Tuesday.<\/p>\n
The people declined to be named as the deal discussions are confidential.\u00a0Advent\u00a0declined to comment, while\u00a0PayPal\u00a0and\u00a0Stripe\u00a0did not immediately respond to Reuters requests for comment.<\/p>\n
The proposal follows an initial approach made in early April, the\u00a0sources\u00a0said.\u00a0Stripe\u00a0and\u00a0Advent\u00a0have not received a response from\u00a0PayPal\u00a0and are seeking to advance discussions in the coming weeks, the\u00a0sources\u00a0added.<\/p>\n
Under the proposal,\u00a0Stripe\u00a0and\u00a0Advent\u00a0would jointly own\u00a0PayPal, with each holding an equal stake, rather\u00a0than\u00a0breaking up the company, the people said. There is no certainty the approach will result in a transaction, they added.<\/p>\n
Founded in the late 1990s,\u00a0PayPal\u00a0was an early player in digital payments, but has faced increasing competition as consumers have embraced alternative payment methods and rivals such as Apple Pay and Google Pay have gained market share.<\/p>\n
It has spent the past several years grappling with slowing growth and intensifying competition in digital payments, wiping out much of the value it gained during the pandemic.<\/p>\n
The company’s market capitalization peaked at about $360\u00a0billion\u00a0in 2021 and fell to as low as roughly $36\u00a0billion\u00a0this year. It has lost\u00a0more\u00a0than\u00a040% of its market value over the past 12 months.<\/p>\n
After taking over in March,\u00a0PayPal\u00a0CEO Enrique Lores started a sweeping\u00a0turnaround\u00a0exercise to simplify \u200cthe payments provider and sharpen its focus on growth.<\/p>\n
In April, the company split its operations into three units covering checkout, consumer financial services Venmo, and payments and crypto, while making a series of management changes.<\/p>\n
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Samuel Boivin | Nurphoto | Getty Images Payments company\u00a0Stripe\u00a0and private equity firm\u00a0Advent\u00a0International have made a joint\u00a0offer\u00a0to acquire\u00a0PayPal\u00a0Holdings Inc\u00a0for…\n","protected":false},"author":2,"featured_media":763928,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[449,116,5681,28,122,101,266544,112,11919,74,5103],"class_list":["post-763927","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-breaking-news-economy","tag-breaking-news-markets","tag-breaking-news-technology","tag-business","tag-business-news","tag-economy","tag-enrique-lores","tag-markets","tag-paypal-holdings-inc","tag-technology","tag-world-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/763927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=763927"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/763927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/763928"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=763927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=763927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=763927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}