EXCLUSIVE: PayPal board sees Stripe-Advent offer as inadequate, sources say

PayPal Board Views Stripe-Advent Takeover Bid as Inadequate

The board of directors at PayPal views a $53 billion takeover bid from rival Stripe and private equity firm Advent International as undervaluing the company, according to people familiar with the matter. The proposal, submitted earlier this month, offers $60.50 per share, representing approximately a 28 per cent premium over the closing share price on Tuesday, July 15, 2026.

PayPal has not formally responded to the offer. While the board is evaluating the bid, its early assessment is that the price does not fully reflect the potential value the company could create if management successfully executes its current turnaround strategy. The board is also weighing the certainty of financing, potential regulatory hurdles, and a timeline that could be lengthy.

PayPal rose 2 per cent to $56.73 on Thursday, July 16, 2026.

Financing and Consortium Structure

The bid is supported by a financing package of roughly $50 billion provided by JPMorgan and Morgan Stanley, both of which are also serving as advisers to the consortium. Stripe and Advent are contributing $17 billion in equity. Stripe enlisted Advent as an equity partner because funding the entire equity portion of the deal independently would be difficult.

Under the terms of the proposal, Stripe and Advent would jointly own PayPal with equal stakes rather than breaking the company apart. However, sources say the consortium has considered remedies to satisfy antitrust regulators. This could involve separating PayPal’s Braintree business or other assets and transferring them to Advent, which could then combine those assets with its other payments investments, including Nuvei.

This current effort follows an initial approach made in early April. Block was part of that original group but exited the consortium before Stripe and Advent submitted the latest offer.

Strategic Context and Market Pressure

The proposal arrives as PayPal struggles to compete against rivals like Google Pay and Apple Pay. After peaking at a market capitalization of about $360 billion in 2021, its value fell to roughly $36 billion this year, losing more than 40 per cent of its market value over the last 12 months.

Chief executive Enrique Lores, who took over in March, has launched a turnaround exercise to simplify the provider and focus on growth. In April, Lores split operations into three units: consumer financial services (Venmo), checkout, and payments and crypto. He also outlined plans in May to use artificial intelligence to streamline operations and remove workforce duplication. These initiatives are intended to save about $1.5 billion over the next two to three years, a sum the company said it will reinvest to drive growth. Other reports suggest the company intends to reduce its workforce by around 20 per cent.

A merger would combine two of the most widely used payment platforms for internet merchants. In 2025, PayPal handled roughly $1.8 trillion in payment volume for around 440 million active accounts, while Stripe processed $1.9 trillion. Together, they would create one of the world's largest online payments companies, processing some $3.7 trillion of annual volume.

Industry Consolidation

The bid reflects a broader trend of M&A activity in financial technology as companies seek scale and exposure to business-to-business and cross-border payments. In 2025, Global Payments agreed to acquire Worldpay from FIS and private equity firm GTCR for $24.25 billion. Additionally, Canadian firm Nuvei, backed by Advent International, acquired Payoneer Global for $2.75 billion.

Despite PayPal's reservations, sources say the consortium remains the most serious bidder and is interested in reaching an agreement, though negotiations are expected to take time. PayPal, Advent, JPMorgan, Morgan Stanley, and Stripe declined to comment.

Investors are now looking toward PayPal's earnings report on July 28, 2026, for evidence that growth in its core checkout business is stabilizing following a weaker-than-expected outlook and warnings of slowing momentum earlier this year.