PayPal Attracts Acquisition Interest Amid Sharp Share Decline
PayPal has drawn interest from multiple potential buyers after its shares plunged by nearly 46% over the past year, reducing the company’s market capitalization to approximately $38.4 billion, according to sources familiar with the matter.
The sources indicated that PayPal has held meetings with banks and financial advisers following full acquisition proposals from some competitors, while other parties have expressed interest in acquiring specific assets rather than the entire company. Discussions remain at an early stage and may not necessarily result in finalized transactions.
The company’s Q4 2025 financial results showed net income of $1.44 billion on revenues of $8.68 billion, falling short of analysts’ expectations of $8.8 billion, signaling a slowdown in payment volumes across its platform.
PayPal experienced strong growth during the COVID-19 pandemic as consumers and merchants shifted rapidly toward digital payments. However, growth momentum weakened in subsequent years, despite the company launching a multi-year transformation plan aimed at strengthening financial stability and expanding market share.
On the leadership front, Enrique Lores is set to assume the role of Chief Executive Officer on March 1, succeeding Alex Chriss, who stepped down after the company’s transformation strategy failed to deliver the desired results.
As of the end of 2025, PayPal reported approximately 439 million active consumer and merchant accounts worldwide and employed around 23,800 people.
Through these strategic discussions, PayPal is seeking to refocus on its core payments business, enhance its digital service offerings, and explore options ranging from asset divestitures to potential acquisitions, as it navigates an increasingly competitive and rapidly evolving fintech landscape.