Overview
The joint acquirers Stripe and Advent International have lodged a formal proposal to purchase PayPal Holdings Inc, valuing the payments company at more than $53 billion. The offer price is set at $60.50 per share, which constitutes a 28% premium over PayPal’s closing price on the Tuesday prior to the announcement.
Financing and Timeline
The transaction is underpinned by approximately $50 billion of committed financing from a syndicate of banks, according to Reuters. The proposal, first submitted earlier in July, seeks to finalize the combination by the end of the month. Under the terms of the deal, Stripe and Advent would each hold an equal 50% stake in the combined entity.
Market Reaction
Following the report, PayPal’s shares surged more than 20% in U.S. pre‑market trading. After the market opened, the stock moderated but remained up 14.2% as of 09:42 ET.
Commentary
Chris Jones, Managing Director at PSE Consulting, described the $53 billion valuation and 28% premium as reflecting the strategic value of the transaction and called it the boldest reshaping of the e‑commerce landscape in a decade. Jefferies analyst Hannes Leitne noted that the combined Stripe‑PayPal entity would focus on the consumer side—such as Link, Venmo, and Button—rather than the merchant side, and that integrating PayPal’s Braintree could add roughly $600 billion of total payment volume to Stripe’s enterprise business.
PayPal Response
PayPal did not immediately respond to a request for comment via email.