PayPal shares rose 16.2% in pre-market trading after news broke that payments startup Stripe and private equity group Advent International had made a joint offer to acquire the company for $60.50 per share, valuing it at over $53 billion.
The proposal was submitted to PayPal's board in early July and has approximately $50 billion in committed funding from banks, Reuters reports.
The offer represents a premium of approximately 28% over the closing price of PayPal shares on Tuesday, July 14, the day before the information was released.
This joint proposal follows an initial approach made in April, when Stripe and Advent expressed interest in the acquisition. The idea is for Stripe and Advent to hold equal stakes, keeping PayPal unified and without a breakup.
If completed, the transaction could represent one of the largest acquisitions in the financial technology segment, impacting the competitive landscape and service offerings in the global digital payments market.
Founded in the late 1990s, PayPal was one of the pioneers in digital payments, but it has faced increasing competition from alternatives such as Apple Pay and Google Pay, which have gained market share.
The company has been dealing with slowing growth and increased competition, resulting in a significant loss of market value, which reached approximately US$360 billion in 2021 – when shares peaked at US$309.1 – and fell to approximately US$36 billion in 2026.
Since March, with the arrival of CEO Enrique Lores, PayPal has begun a restructuring process to simplify its operations and focus on growth. In April, the company divided its operations into three units: checkout, consumer financial services through Venmo, and payments and cryptocurrencies, in addition to making changes in management.
In the first quarter of 2026, the company reported revenue of US$8.35 billion, exceeding the average analyst estimate of US$8.05 billion. Total payment volume increased 8% year-over-year, reaching approximately US$464 billion.
The CEO also announced plans to use artificial intelligence to optimize operations and reduce job overlap, expecting to save approximately US$1.5 billion over the next two to three years, which will be reinvested to foster growth.
Global movement
In the context of the sector, PayPal's offering comes amid a wave of mergers and acquisitions in the global payments market, driven by rapid changes in financial technology and the rise of artificial intelligence. Companies in the segment are seeking scale and exposure to fast-growing segments, such as cross-border and B2B payments, in the face of a slowdown in traditional processing.
Among recent transactions, noteworthy are the acquisition of Worldpay by Global Payments for US$24.25 billion in 2025, and the purchase of Payoneer Global by the Canadian company Nuvei for US$2.75 billion, a company backed by Advent. In addition, Mastercard is evaluating the sale of a majority stake in its British subsidiary Vocalink.
With headquarters in San Francisco and Dublin, Stripe, a privately held company valued at $159 billion in an offering to employees and shareholders, is one of the most valuable companies in the industry.
The next steps in the negotiation depend on PayPal's official response and approval from regulatory authorities.
