Stripe and Advent Bid $53B for PayPal at $60.50 a Share
Stripe and Advent offered $60.50 a share for PayPal, valuing it above $53 billion, about a 28% premium; the bid would put PayPal’s PYUSD stablecoin into Stripe’s Tempo and Bridge systems.
Stripe and private equity firm Advent International have offered $60.50 a share to buy PayPal, valuing the company at more than $53 billion, roughly a 28% premium to a recent close. The proposal would place PayPal’s PYUSD stablecoin and its crypto services under Stripe’s payments infrastructure.
People familiar with the matter say the offer is supported by about $50 billion in committed bank financing. Under the proposal, Stripe and Advent would hold equal stakes in PayPal. The approach followed an initial outreach in April and a formal proposal submitted in July. PayPal’s board has not accepted the offer and is reviewing its options.
If the deal is completed, PayPal’s PYUSD stablecoin and its crypto checkout, buying and selling services would be incorporated into Stripe’s existing crypto and payments stack. Stripe has developed a payments-focused blockchain called Tempo with developer firm Paradigm and bought Bridge, a stablecoin orchestration platform, for $1.1 billion. Stripe is also a backer of the Open USD stablecoin and has discussed making it a default option on its platforms.
Combining PayPal’s consumer-facing crypto products with Stripe’s settlement rails and orchestration tools would consolidate several layers of dollar-token payments: token issuance, orchestration across networks, settlement infrastructure and merchant checkout.
The bidders have indicated they do not plan to break up PayPal if the transaction proceeds.
Regulatory review and PayPal board approval are required for the deal to move forward. Antitrust regulators could examine the transaction because it would combine two of the largest online payments providers active in the U.S. and Europe. There is no guarantee the talks will lead to a transaction.
The financial terms reflect a decline in PayPal’s market value from its pandemic-era peak. At its height, PayPal reached a market value above $350 billion; the current offer values the company at roughly one-seventh of that level. The buyers are offering a cash premium for the company after a period of lower valuation.
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