PayPal Board Rebuffs $53bn Stripe and Advent Bid as Too Low, Sources Say
The board reckons a joint takeover approach undervalues a turnaround the market has yet to believe in.
July 17, 2026 – 8:15 am
PayPal’s board believes that a $53bn (£39bn) joint takeover offer from Stripe and Advent International undervaluing the payments pioneer. This comes as a result of fast-moving consolidation in the payments industry.
According to sources, the directors view the bid as inadequate and have not yet responded formally. The approach values PayPal at $60.50 per share, a 28% premium over its $47.37 close prior to the news announcement.
The Bold Move by Stripe
This would represent the most aggressive move yet by Stripe, valued at approximately $159bn, who have previously circled public markets without making a direct listing. PayPal stock surged about 19% to $56.60 in early trading, as per market reports. This is significant considering the company’s shares have declined over 40% in the past year.
Antitrust Concerns and Turnaround Plans
The directors are weighing the bid against PayPal management’s turnaround plan, believing the price does not adequately reflect potential future gains. They are also evaluating antitrust risks and the lengthy timeline for such a large deal, given the significant market share the combined entity would hold in online checkouts.
Stripe and Advent have discussed potential remedies to address these concerns, including carving out Braintree, PayPal’s merchant-processing arm, should regulators demand it. Both would own PayPal equally and have no plans to dismantle other parts of the business.
Financial Backing
The financing indicates serious commitment from the bidders. They have secured roughly $50bn in committed debt from JPMorgan and Morgan Stanley, in addition to approximately $17bn of their own equity. This heavy investment suggests they anticipate raising offers further.
PayPal’s market value has dropped to around $36bn this year, a steep fall from its $360bn peak in 2021. Despite this, PayPal boasts over 439 million active accounts, making it a formidable target for consolidation.
Competitive Landscape and Sector Jittery Mood
The bid comes during a challenging period for the sector, with traditional players like Visa and card networks racing into stablecoins and account-to-account rails that threaten PayPal’s core business. Consolidation has accelerated as scale is seen as a shield against margin pressure from newer competitors.
For Stripe, acquiring a publicly traded company with hundreds of millions of consumer accounts would provide them with a retail-facing brand for the first time. Advent, on the other hand, sees an opportunity to invest in a battered franchise away from quarterly scrutiny.