Advent, Stripe abandon US$50 billion pursuit of PayPal: sources
The platform has struggled with modernising its payment technologies as rivals seized market share
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A CONSORTIUM of buyout firm Advent and payment processor Stripe has decided to abandon its pursuit of fintech pioneer PayPal Holdings, a potential deal that would have ranked as one of the biggest-ever leveraged buyouts, according to people familiar with the matter.
The group is no longer pursuing a deal for PayPal, the people said, asking not to be identified because the information is private.
It had previously offered more than US$50 billion for the company, people with knowledge of the matter have said. The offer was a fraction of the roughly US$360 billion valuation PayPal commanded at the height of the Covid-19 pandemic-era boom in 2021.
Founded in the late 1990s, PayPal was an early mover in digital payments. It has since struggled with modernising its payment technologies as rivals such as Apple and Alphabet have seized market share.
Bloomberg News first revealed in February that Stripe was considering an acquisition of parts or all of PayPal after a stock slump wiped out a chunk of its value.
The takeover interest, coupled with second-quarter earnings that topped analyst estimates, has helped it recover. PayPal shares have jumped more than 40 per cent this quarter, giving the company a market value of about US$52.6 billion.
Over the years, PayPal has responded to pressures with sweeping changes, including management reshuffles, workforce reductions and a renewed focus on higher-margin products.
The San Jose, California-based company ousted former CEO Alex Chriss earlier in 2026 and replaced him with Enrique Lores, who took over the role in March.
Lores said he will set specific financial goals for PayPal, change how the payments company reports earnings and assign each line of business a specific revenue target to give investors a better sense of their potential.
The Wall Street Journal reported in August that PayPal had found Advent and Stripe’s initial bid insufficient and the two sides were negotiating a potential higher price.
Advent and Stripe could always opt to come back at a later date if the situation changes. Representatives for Advent, PayPal and Stripe declined to comment. BLOOMBERG, REUTERS
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