Stripe and Advent drop $53 billion bid for PayPal, shares slide

Stripe and Advent International have walked away from their roughly $53 billion attempt to buy PayPal.

Had it gone through, the deal would have been the biggest fintech takeover on record. The announcement sent PayPal’s stock down sharply before Friday’s open.

Why didn’t Stripe and Advent acquire PayPal?

Stripe, the privately held payments firm, and the private equity house, Advent, have abandoned their bid to acquire PayPal at $60.50 a share ($53 billion). Back in April, Block joined Stripe and Advent as a third partner, then exited before the formal bid was made.

PayPal’s directors judged the Stripe-Advent bid as too low, despite the pair offering a 28% premium over PayPal’s price at the time. There was a resulting standoff in which the board refused to send a formal response to the deal. It was during this period that the suitors pulled out.

Stripe acquiring PayPal, which is one of its major competitors, would have led to the combination of merchant services, consumer wallets like Venmo, cross-border transfers, and stablecoin products, making Stripe a massive player in the payments world.

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