Stripe and private equity firm Advent International have made a joint $53 billion takeover offer for PayPal Holdings Inc. at $60.50 per share, representing a 28% premium. Backed by $50 billion in bank financing, the deal would see Stripe and Advent hold equal stakes. The bid comes as PayPal struggles with intense competition from Apple Pay and Google Pay, which dragged its market cap down from a 2021 peak of $360 billion to $36 billion. PayPal CEO Enrique Lores is currently executing a turnaround plan to save $1.5 billion using AI.
Stripe-Advent takeover bid details
- ▪PayPal's board of directors is scheduled to meet as early as July 20, 2026, to discuss the joint takeover offer
- ▪Stripe and private equity firm Advent International made a joint offer to acquire PayPal Holdings Inc. for $60.50 per share, valuing the company at more than $53 billion
- ▪The takeover bid is backed by approximately $50 billion in committed financing from banks, with Stripe, Advent, and Block contributing $17 billion in equity
- ▪The $60.50 per share bid represents an approximate 28% premium over PayPal's closing share price on Tuesday, July 14, 2026
- ▪Under the proposal, Stripe and Advent International would jointly own PayPal, with each holding an equal stake in the company
PayPal competitive decline
- ▪PayPal's stock lost more than 40% of its market value over the 12 months preceding the July 2026 takeover offer
- ▪PayPal has faced intense competition and lost market share to alternative digital payment rivals, including Apple Pay and Google Pay
- ▪PayPal's market capitalization peaked at approximately $360 billion in 2021 and fell to as low as roughly $36 billion in 2026
PayPal turnaround efforts
- ▪PayPal plans to leverage artificial intelligence to streamline operations and eliminate workforce duplication, aiming to save $1.5 billion over two to three years
- ▪PayPal split its operations in April 2026 into three distinct units covering checkout, consumer financial services Venmo, and payments and crypto
- ▪PayPal CEO Enrique Lores, who took office in March 2026, launched a turnaround strategy to simplify operations and focus on growth
Combined merchant payment scale
- ▪Stripe would gain direct consumer relationships, Venmo's peer-to-peer network, and PayPal's consumer-facing checkout button to accelerate its digital wallet offerings
- ▪A merger of Stripe and PayPal would combine Stripe's $1.9 trillion and PayPal's $1.8 trillion in annual payment volumes to create a merchant acquirer handling $3.7 trillion
Payments sector consolidation activity
- ▪Global Payments agreed to acquire rival Worldpay from FIS and GTCR for $24.25 billion in 2025
- ▪Canadian payments firm Nuvei, backed by Advent International, acquired Payoneer Global for $2.75 billion
Analyst valuation perspectives
- ▪TD Cowen analyst Bryan Bergin noted that PayPal's consumer offerings could materially accelerate Stripe's efforts to build out its digital wallet offering
- ▪William Blair analyst Andrew Jeffrey stated that PayPal's CEO is unlikely to embrace the $60.50 per share offer, which could be viewed as a low-ball bid
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