PayPal Drops 13% as Stripe and Advent Walk Away From Takeover Bid

PayPal shares fell 13% in premarket trading on Aug. 28 after Reuters reported that Stripe and Advent International had abandoned their pursuit of the payments company. The move erased the immediate takeover premium implied by the consortium's earlier proposal.

Stripe and Advent abandon PayPal takeover pursuit

The reported withdrawal ends a potential deal involving two prominent names in payments and private equity. Stripe, the privately held payments company, had pursued PayPal alongside Advent International, according to the report.

PayPal's sharp premarket decline reflects the market's reaction to the loss of that prospective transaction. Reuters reported the shares' 13% fall after news that the consortium had walked away.

The withdrawn offer valued PayPal at about $53 billion

The consortium had offered $60.50 a share for PayPal, a proposal that placed the company's value at approximately $53 billion, Axios reported in July.

That figure is now the clearest public marker for the value attached to the abandoned bid. The $60.50-per-share proposal had framed the potential transaction before the reported decision to end the pursuit.

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