Stripe, Advent Bid $60.50/Share for PayPal

Stripe and Advent International have bid $60.50 per share for PayPal, valuing the company at $53 billion, with talks advancing for a potential deal. The previous bid was rejected, but negotiations for a potentially higher price are ongoing.

The combined company would handle around $3.7 trillion in payments per year, with Stripe processing roughly $1.9 trillion a year on the merchant side of transactions and PayPal having 439 million active accounts. This would make Stripe one of the largest online payment companies in the world.

PayPal's CEO, Enrique Lores, has been trying to turn the business around since taking over in March. The company has divided into three units, focusing on checkout, Venmo, and payments and crypto. A merger with Stripe could reduce the latter's reliance on Visa and Mastercard and allow it to incorporate Venmo, PayPal's checkout system, and its crypto features into its own products.

## What's at Stake The potential deal comes as PayPal's market value has declined significantly from its peak of near $360 billion in 2021. The company's Q2 revenue was $8.68 billion, with non-GAAP EPS beating consensus at $1.38. A deal could have significant implications for the online payment industry, with the combined company handling a substantial volume of transactions.

## Why it Matters The talks between Stripe, Advent International, and PayPal highlight the ongoing consolidation in the fintech industry. A potential deal would demonstrate the growing importance of online payment systems and the need for companies to scale up to remain competitive. The outcome of the negotiations will be closely watched by investors and industry observers, as it could have a significant impact on the future of online payments.

PayPal's shares have risen in response to the news, closing at $61.66 on Friday, up 1.77% on the day, 4.38% on the week, and 11.06% over the past month. The company has declined to comment on the talks, while a Stripe spokesperson said the company does not comment on rumors or speculation.