Advent-Stripe Consortium Abandons $50 billion PayPal Bid, Shares Slide 16%
A consortium led by Advent International and Stripe has abandoned its takeover bid for PayPal, which had valued the payments company at over $50 billion. PayPal shares fell as much as 16% in premarket trading on August 28 following the news. The consortium had submitted an offer on July 15, lifting PayPal's stock by about 30% through August 27, but PayPal rejected the proposal.
On August 28, PayPal shares dropped as much as 16% in premarket trading after a consortium comprising private equity firm Advent International and payments company Stripe abandoned its acquisition bid for PayPal. The consortium had proposed a takeover valued at more than $50 billion, which, if completed, would have ranked among the largest leveraged buyouts in history.
In February, Stripe had considered acquiring all or part of PayPal. On July 15, the consortium submitted a formal offer to PayPal, driving the company's shares up by approximately 30% through the close on August 27. PayPal rejected the $50 billion proposal, and the consortium subsequently withdrew. Following the announcement, PayPal's stock gave back much of those gains.
PayPal is currently in a transition phase, having brought in a former chief executive of HP. Its share price has fallen back to levels last seen in 2018.