Stripe and private equity firm Advent International have made a joint bid to acquire PayPal. The offer values PayPal at over $53 billion, or $60.50 per share. This represents a premium of roughly 28% over PayPal's recent closing price.
The news sent PayPal shares surging nearly 17% in trading. The proposed deal would split ownership between the two firms, with about $50 billion in bank financing backing the effort. The goal is to take PayPal private.
Stripe first showed interest in acquiring PayPal earlier this year. PayPal's board is expected to review the proposal. Investor Michael Burry has publicly criticized the bid price, calling it too low and suggesting it is an opening offer.
PayPal has approximately 400 million accounts, including the Venmo platform. The company also operates the PYUSD stablecoin, a significant player in the crypto market.
The potential deal faces major regulatory scrutiny. Combining Stripe and PayPal would create a powerful entity in the digital payments space, likely attracting antitrust reviews in both the United States and Europe.