PayPal (PYPL) Stock Drops 13% As Stripe-Advent Consortium Walks Away
TLDR
- PayPal stock fell over 12% in premarket trading after Stripe and Advent International abandoned their $60.50-per-share takeover bid
- The consortium’s offer valued PayPal at roughly $53 billion, far below its 2021 pandemic-era peak of ~$360 billion
- PayPal’s board had previously rejected the bid as inadequate, with analysts noting it was less than 9x free cash flow
- Portfolio manager Thomas Hayes backed the board’s decision, saying it preserved “meaningful upside” for existing shareholders
- CEO Enrique Lores has reorganized PayPal into three units: checkout, Venmo, and payments and crypto, as part of a broader turnaround
PayPal (PYPL) stock was trading around $53.20 in premarket Friday, down from a Thursday close of $61.47, after Bloomberg News reported that Stripe and Advent International had formally walked away from their takeover pursuit.
The consortium had put forward a bid of $60.50 per share in mid-July. That valued PayPal at approximately $53 billion. PayPal’s board rejected it, calling the offer inadequate.
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