PayPal’s board believes a $53 billion takeover proposal from Stripe and Advent International undervalues the company and still faces regulatory and financing hurdles, according to Reuters, citing people familiar with the matter. The sources said PayPal has not formally responded and is weighing the offer against management’s turnaround plan. The board’s initial view is that the $60.5-per-share proposal carries a premium to recent trading levels but does not fully capture the company’s future potential. On the financing side, the buyers have secured roughly $50 billion in commitments from JPMorgan Chase and Morgan Stanley, alongside $17 billion in equity from Stripe and Advent to back the bid. The report also said the buyers have considered remedies including divesting Braintree to Advent if antitrust issues arise. Block had been involved earlier in the process but exited before the latest offer was submitted. Investors are now watching PayPal’s earnings report scheduled for July 28.
PayPal’s board believes a $53 billion acquisition proposal from rival Stripe and private equity firm Advent International undervalues the company, and that the deal would also face regulatory and financing obstacles, according to Reuters, which cited people familiar with the matter.
The sources said PayPal has not formally responded to the approach. The board is weighing the bid against management’s turnaround strategy, and its initial view is that the $60.5-a-share offer, while above the company’s recent stock price, does not fully reflect PayPal’s future potential.
According to the report, the buyer group has secured about $50 billion in financing commitments from JPMorgan Chase and Morgan Stanley. Stripe and Advent are also contributing $17 billion in equity to support the $53 billion offer.
If antitrust concerns emerge, the buyers have considered remedies that include divesting the Braintree business to Advent. The sources also said Block had initially taken part in the process, but withdrew before the latest bid was submitted.
Investors will be watching PayPal’s earnings report on July 28.
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