PayPal Sale Talks With Stripe and Advent Reportedly Heat Up

PayPal is reportedly in renewed talks about a potential sale to Stripe and private equity firm Advent International, months after rejecting an earlier offer that valued the payments company at about $53 billion.

The discussions have continued and could lead to a deal in the coming weeks, according to The Wall Street Journal, which cited people familiar with the negotiations. No agreement has been reached, and the talks could still end without a transaction.

PayPal sale talks continue after earlier offer

Stripe and Advent previously offered $60.50 per share for PayPal, valuing the company at roughly $53 billion. PayPal rejected that proposal after determining the price was too low.

The potential sale comes as CEO Enrique Lores attempts to revive PayPal’s performance. Lores joined the company in March after leading HP and soon began restructuring the payments business.

In April, PayPal reorganised its operations into three areas: checkout solutions and PayPal; consumer financial services, including Venmo; and payment services and crypto. Lores later told investors the company intended to refocus on its technology foundations.

The turnaround includes restructuring and cost cuts

PayPal’s turnaround strategy also includes plans to reduce costs and shrink its workforce by about 20% over the next two to three years.

The company grew rapidly during the pandemic as online shopping surged, but its trajectory weakened as that e-commerce boost faded and competition across digital payments intensified.

PayPal traces its roots to 1998 and is associated with a group of early executives and founders who later became prominent figures in Silicon Valley, including Peter Thiel, Elon Musk, Max Levchin and Luke Nosek.

A sale to Stripe and Advent would represent a major change in PayPal’s strategy, but the discussions remain preliminary. The latest reporting indicates negotiations are active, not that PayPal has agreed to be acquired.