PayPal (PYPL) stock surged 16% following reports that Stripe and Advent International submitted a joint $53 billion bid to acquire the payment platform. The offer, valued at $60.50 per share and representing a roughly 28% premium, was backed by approximately $50 billion in committed financing from banks. The proposal follows an initial approach made in early April. The combined entity could become a dominant force in the payment market.
PayPal (PYPL) stock skyrocketed on Wednesday morning after Stripe and Advent sent in a $53 billion joint bid to buy the payment platform.
The joint offer, submitted earlier this month, values PayPal at $60.50 per share, according to Reuters. PYPL shares are up 16% in the last 24 hours at the time of writing, adding to nearly 30% gains in the last 30 days.
The offer, submitted earlier this month, is backed by about $50 billion in committed financing from banks. The offer represents around a 28% premium to PayPal’s closing share price on Tuesday.
The proposal follows an initial approach made in early April. Stripe and Advent have not received a response from PayPal and are seeking to advance discussions in the coming weeks.
The two companies would own PayPal equally if a deal is completed, rather than breaking it into separate businesses. Earlier this year, new CEO Enrique Lores reorganized PayPal into three business units to streamline operations and improve growth.
PayPal stock is down 18% year to date and 35% lower than one year ago. The payment platform faces competition from Apple Pay, Block, Stripe, and buy now, pay later companies Affirm and Klarna.
The stock has been unable to reclaim its 2021 all-time high of $310, set during the pandemic. The average analyst price target for PayPal is $47.80, with a high forecast of $63.00 and a low forecast of $34.00.
