PayPal Shares Fall as Advent, Stripe Abandon $50B Acquisition

PayPal Holdings Inc. shares fell after a report that a consortium consisting of Advent and Stripe abandoned its acquisition of PayPal.

PayPal stock is under bearish pressure. Why are PYPL shares falling?

Advent, Stripe drop $50 billion acquisition bid

According to Bloomberg, citing sources familiar with the matter, buyout firm Advent and payments processor Stripe have decided to abandon their acquisition of PayPal. The report said the consortium was no longer seeking to acquire the company, after its offer exceeded $50 billion. Representatives for Advent, PayPal, and Stripe declined to comment.

Bloomberg first reported in February that Stripe was considering acquiring part or all of PayPal after the stock crash wiped out significant market value. The acquisition interest helped lift shares, with PayPal rising over 40% this quarter, bringing its market value to approximately $52.6 billion. The Wall Street Journal reported this month that PayPal believed the initial offer was insufficient, and the two sides were negotiating a potentially higher price.

Bloomberg noted that the situation remains fluid, and Advent and Stripe could still revisit a bid in the future.

PayPal Shares Fall

PYPL price action: As of writing, PayPal shares were down 14.05% at $52.83.