PayPal Shares Surge as Stripe and Advent Launch $53 Billion Takeover Bid
PayPal shares recorded their strongest one-day gain on record after payments giant Stripe and private equity firm Advent International reportedly submitted a joint takeover proposal valuing the company at more than $53 billion.
The consortium offered $60.50 in cash for each PayPal share, representing a premium of about 28% to the company’s closing price before news of the approach emerged, according to Reuters. PayPal shares jumped nearly 17% following the report, although neither the company nor the prospective buyers initially confirmed the discussions publicly.
Under the proposed structure, Stripe and Advent would each own a 50% stake in PayPal rather than dividing the company’s assets between them.
The bidders made an initial approach in April before submitting the latest proposal earlier in July. They are seeking to advance negotiations in the coming weeks, although there is no certainty that the offer will lead to an agreement.
The bid would bring together two of the largest names in digital payments. Stripe is privately held and primarily supplies payment-processing infrastructure to businesses, while PayPal operates a broad consumer and merchant ecosystem that includes its core digital wallet, Venmo and the Braintree processing platform.
A successful acquisition would give Stripe immediate access to PayPal’s global consumer network and expand its position beyond merchant payments. PayPal reported 439 million active accounts, compared with around 250 million users of Stripe’s Link accelerated-checkout service.
Advent’s participation gives the consortium substantial financial backing and brings experience from a series of previous investments in payments and financial technology businesses.
The bidders have assembled approximately $50 billion in financing from JPMorgan and Morgan Stanley, alongside around $17 billion in equity commitments, according to people familiar with the proposal.
PayPal’s board reportedly considers the current offer inadequate, with directors concerned that it does not fully reflect the company’s potential value if its turnaround strategy succeeds. Financing certainty and possible regulatory obstacles are also among the issues being assessed.
Competition authorities could closely examine a combination of two major online payment providers. The bidders may consider selling businesses such as Braintree to address potential antitrust concerns, although no final divestment plan has been announced.
The market reaction reflects the scale of the proposed premium as well as investor frustration over PayPal’s recent performance. Before the takeover report, the company’s valuation had fallen sharply from its pandemic-era peak as it faced slower growth and stronger competition from Apple Pay, Google Pay and other digital-payment platforms.
PayPal shares remain more than 80% below their July 2021 record despite the takeover-driven rally. Some shareholders and analysts argue that the $60.50 proposal still undervalues the company’s cash generation, consumer reach and prospects under new management.
The company appointed Enrique Lores as chief executive earlier in 2026 and has begun a restructuring programme aimed at reducing annual costs by about $1.5 billion. Its forthcoming second-quarter results are expected to offer investors a clearer indication of whether the turnaround is gaining momentum.
PayPal has not agreed to sell itself, and the discussions may still end without a transaction. However, the size of the proposal and the financing assembled by Stripe and Advent suggest the interest has moved beyond preliminary takeover speculation.