Stripe Is Reportedly In Talks To Buy PayPal
Engadget • • business
Key Points:
- Stripe and private equity firm Advent International are in negotiations to acquire PayPal, having previously offered $60.50 per share, valuing the company at $53 billion, though PayPal initially rejected the offer.
- PayPal's market value had fallen to around $40 billion at the time of the offer, down approximately $320 billion from its peak during the COVID-19 pandemic.
- The potential deal could see Stripe and Advent each holding equal stakes and jointly owning PayPal without plans to break up the company, which would position Stripe as one of the largest online payment processors globally.
- PayPal recently appointed Enrique Lores as CEO, who restructured the company into three units focused on checkout, Venmo, and payments/crypto, though the impact of a merger on this structure remains uncertain.
- A merger between Stripe and PayPal could reduce Stripe's dependence on Visa and MasterCard and integrate PayPal's Venmo, checkout system, and crypto features into Stripe's offerings.
