Stripe and private equity firm Advent International have jointly offered to acquire PayPal Holdings PYPL in a deal valued at more than $53 billion, according to Reuters, as quoted on Yahoo Finance. The proposal marks one of the biggest potential transactions in the digital payments industry in recent years.
$60.50-Per-Share Offer
The consortium has offered $60.50 per PayPal share, representing a roughly 28% premium to the stock's closing price on Tuesday. PayPal shares surged about 13.17% after hours on July 14, 2026.
The bid, submitted earlier this month, is backed by about $50 billion in committed bank financing, according to sources familiar with the matter.
Talks Began Earlier This Year
The proposal follows an initial approach made in early April. Sources said Stripe and Advent have yet to receive a response from PayPal but are hoping to advance discussions in the coming weeks.
If completed, the two firms would jointly own PayPal, each holding an equal stake. The proposal does not involve breaking up the company.
Why PayPal Is Drawing Interest
Once a pioneer in digital payments, PayPal has struggled in recent years amid intensifying competition from alternative payment platforms, including Apple Pay and Google Pay.
The company has also faced slowing growth since the pandemic-era e-commerce boom faded, leading to a significant decline in its market valuation.
Despite these challenges, PayPal remains one of the world's largest digital payments platforms, making it an attractive acquisition target for strategic and financial buyers.
PayPal Continues to Improve Operations
Despite competitive pressures, PayPal has shown signs of operational improvement.
In the first quarter, revenue rose 7% year over year to $8.35 billion, exceeding analysts' expectations. On a constant-currency basis, total payment volume increased 8% to approximately $464 billion.
Management has also outlined plans to use artificial intelligence to streamline operations, reduce organizational complexity, and generate roughly $1.5 billion in savings over the next two to three years, with those savings expected to be reinvested in future growth initiatives.
For the second quarter, PayPal expects low-single-digit currency-neutral revenue growth, a low-single-digit decline in transaction margin dollars (TM$) and a high-single-digit fall in non-GAAP EPS. The comparison is difficult because last year's second quarter benefited from a partner renewal, stronger credit performance, lower operating expenses and a favorable tax rate.
PYPL stock currently has a great value score of “A”, but downbeat growth score of “D” and a momentum score of “F.”
ETFs to Gain
As the acquisition news lifted PayPal shares, exchange-traded funds (ETFs) with significant exposure to the stock could also benefit. These include Direxion Daily PYPL Bull 2X ETF PYPU, Global X FinTech ETF FINX and Amplify Digital Payments ETF IPAY.
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This article originally published on Zacks Investment Research (zacks.com).