PayPal’s Five-Year Slide Makes It a $53 Billion Target for Stripe

PayPal shares jumped as much as 19% premarket Wednesday to $56.29, the Wall Street Journal reported, after Reuters reported Stripe and Advent International offered more than $53 billion for the company. The bid values PayPal at $60.50 a share, a 28% premium to Tuesday’s close, backed by roughly $50 billion in committed bank financing.

PayPal has not responded publicly. Even after the jump, its stock trades well below the offer price, a sign Wall Street isn’t ready to call this deal done.

Stripe and Advent Put $60.50 a Share on the Table

The proposal calls for Stripe and Advent to buy PayPal outright and split ownership evenly, so neither firm controls the company alone.

Stripe, the privately held payments processor, would hold half the equity. Advent International, a private equity firm, would hold the other half and has helped line up the bank debt underwriting the purchase.

Interest built over months before Wednesday’s report. One account has Stripe reaching out in February, following up again in April, then filing the formal joint proposal with Advent this month, backed by roughly $50 billion in committed bank financing. PayPal’s board has given no public indication of how it will respond.

A Five-Year Slide from $360 Billion to $36 Billion

The number that explains why PayPal is suddenly a takeover target sits five years in the past. PayPal’s market value peaked near $360 billion in 2021, at the height of pandemic-era online shopping.

It has been mostly downhill since. PayPal’s stock market value fell as low as roughly $36 billion this year, a 90% drop from that peak, as Apple Pay, Klarna and Google Pay each pulled checkout volume away from the brand that once defined online payments.

Apple Pay rides on every iPhone by default. Klarna built its own checkout button around buy-now-pay-later loans. Google Pay comes preloaded across Android. PayPal had to fight for space it used to own outright.

That erosion predates Wednesday’s report by years. Wall Street had already priced PayPal accordingly, which is exactly what made a $53 billion offer plausible instead of outlandish.

Why Did PayPal’s Stock Stop Short of the Offer?

PayPal traded around $56 Wednesday morning, well under the $60.50 offer, because investors are not yet convinced the deal closes at that price, or at all. A gap this size, roughly 7% below the bid, usually signals the market expects a tougher negotiation, a regulatory fight, or a walk-away.

Traders call this merger arbitrage: buying a target’s stock below the offer price and betting the gap closes when a deal completes. A wide, stubborn gap like PayPal’s is the market wagering the process drags on or breaks down entirely.

A prediction market tracked by Lines.com puts an 18% chance the deal closes this year, weighed down by the antitrust risk facing any combination this large.

Equal Owners, One Payments Giant

The proposal keeps PayPal intact instead of carving it into pieces. Stripe and Advent would each hold a 50% stake, and the plan calls for PayPal to keep operating as a single company: no breakup, no asset sale.

Sharing ownership evenly is unusual for a deal this size. It suggests neither buyer wanted to carry the debt load of a $53 billion purchase alone.

Regulators Eye a $3.7 Trillion Combination

A combined Stripe-PayPal would rank among the largest payments networks on earth. Industry estimates put the two companies’ joint annual transaction volume at roughly $3.7 trillion, spanning online checkout, peer-to-peer transfers and the fast-growing stablecoin business.

That scale is why antitrust lawyers expect a long look from regulators. The Federal Trade Commission and Department of Justice in the U.S., along with European competition authorities, would likely open extensive reviews before letting two of the world’s largest digital payments companies combine.

Regulators have grown more willing in recent years to challenge tech mergers on concentration grounds alone, without needing to prove a direct price effect on consumers. A deal that folds Stripe’s merchant network into PayPal’s consumer wallet and Venmo checks several of those boxes at once.

PayPal’s Board Has Stayed Quiet

PayPal has operated as an independent public company since splitting from eBay in 2015, a history laid out in an early annual report as a standalone filer. A completed sale would end that decade of independence.

The Financial Times reported PayPal has been “reluctant to engage with the two suitors” and cautioned a deal was unlikely at the proposed valuation. PayPal’s board has made no public statement since the report broke.

What We Know

• Stripe and Advent submitted a joint proposal this month worth $60.50 a share.
• The bid carries roughly $50 billion in committed bank financing.
• Stripe and Advent would each hold an equal 50% stake and keep PayPal intact.

What’s Unconfirmed

• Whether PayPal’s board will engage with the offer at all.
• Whether regulators would clear or block a combination this large.
• Whether Stripe and Advent will raise their price if PayPal pushes back.

Talks are expected to continue over the next several weeks. Nothing is final until PayPal’s board says so.

Frequently Asked Questions

Is the PayPal and Stripe Deal Official?

No. The $53 billion proposal is a reported bid, not a signed agreement. PayPal has not confirmed it in public, and no merger agreement, proxy filing or shareholder vote date exists yet. The Financial Times has reported PayPal is in no rush to negotiate at the price on offer.

What Has to Happen Before Any PayPal Deal Closes?

A reported bid becomes a completed acquisition only after several standard steps. For PayPal, Stripe and Advent, that path likely includes:

• Due diligence on PayPal’s finances and technology
• A negotiated agreement on final price and terms
• Approval from PayPal’s board and shareholders
• Regulatory review in the U.S. and Europe

Any one of those steps can stall or kill a deal this size.

Would PayPal Be Broken Up if Stripe and Advent Buy It?

No breakup is planned. Stripe and Advent have proposed running PayPal as one intact company with equal 50% ownership stakes, rather than splitting off pieces like Venmo or Braintree for separate sale. Neither firm has disclosed plans for layoffs or a brand change.

How Does This Compare to Other Big Tech Buyouts?

At more than $53 billion, the proposed price would exceed Elon Musk’s $44 billion purchase of Twitter, now X, and Microsoft’s $26.2 billion acquisition of LinkedIn, ranking it among the largest technology takeovers ever attempted.

Why Is Advent International Involved Instead of Stripe Alone?

Advent brings the private equity financing and balance sheet capacity a $53 billion cash-and-debt purchase requires. The firm has helped arrange much of the roughly $50 billion in committed bank financing, letting Stripe take a large stake without funding the entire purchase itself.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Merger talks can change or collapse without notice. Consult a licensed financial adviser before making investment decisions. Figures are accurate as of publication on July 15, 2026.