PayPal Shares Surge on $53 Bn Stripe-Advent Bid

PayPal shares surged Wednesday after Stripe and private equity firm Advent International submitted a joint offer worth more than $53 billion for the company that helped bring digital payments into mainstream online commerce.

The proposed acquisition would pair two companies associated with different periods of the internet economy. PayPal emerged in the late 1990s and became one of the defining payment platforms of the early e-commerce era, while Stripe grew during the following decade by supplying payment-processing software and financial infrastructure to online businesses.

Stripe and Advent offered $60.50 for each PayPal share, about 28 percent above the company’s closing price of $47.37 on Tuesday.

The proposal, submitted earlier this month, is supported by approximately $50 billion in committed bank financing, Reuters reported, citing two people familiar with the discussions.

PayPal shares climbed more than 16% on Wednesday. The stock remained below the reported offer price, reflecting that PayPal has not agreed to the proposal and that no transaction has been announced. PayPal has not responded to the offer, while Stripe and Advent are seeking to move the discussions forward.

PayPal, Stripe and Advent declined to comment, according to CNBC.

Under the proposal, Stripe and Advent would each hold an equal stake in PayPal and retain the company as a single business rather than dividing its operations or selling individual assets.

The formal offer followed an initial approach in early April, according to Reuters. There is no certainty that the approach will lead to a completed transaction.