Once high-flying PayPal becomes a takeover target as it attempts a turnaround
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Set us as preferred Digital payments giant PayPal was soaring high five years ago, riding the surge in online shopping after the COVID-19 pandemic reshaped people’s buying habits.Now the San José fintech company has reportedly become a takeover target as it tries to get more people to click on the PayPal button to purchase items amid fierce competition.Stripe, a financial services platform that helps businesses accept and manage payments, and private equity firm Advent International made a joint offer to acquire PayPal for $60.50 per share, according to multiple news reports, citing anonymous sources.The bid values PayPal at roughly $53 billion.The takeover offer puts pressure on a business facing a critical juncture.
PayPal has seen growth in branded checkout slow down and its stock plummet more than 25% over a year.PayPal’s new chief executive, Enrique Lores, who took the helm in March, has laid out a plan to help the company bounce back.
In a call with analysts on Tuesday after PayPal reported its second-quarter results, Lores reiterated the company doesn’t comment on market speculation or potential merger and acquisition discussions.PayPal, he said, remains focused on maximizing long-term shareholder value and carrying out its turnaround plan.
He added, however, that PayPal remains “open and objective in evaluating opportunities.” “If we see levers or a path that we believe would create superior value for our shareholders than executing our current strategy, we will, of course, carefully consider them,” he said.PayPal’s stock jumped 4% to $58.32 Tuesday after the company reported second-quarter earnings that beat Wall Street’s expectations.PayPal’s reported adjusted earnings of $1.38 per share surpassed analysts’ estimates of $1.28 per share.
Business PayPal’s stock has dropped as it faces a sl...