- Stripe and Advent submitted a $53 billion joint bid to acquire Paypal, valuing the company at $60.50 per share.
- PayPal stock surged 16% in the last 24 hours, adding to nearly 30% gains over the past 30 days.
- The offer represents a 28% premium to Tuesday’s closing price; PayPal has not yet responded.
- Analysts’ average price target for PayPal is $47.80, with a high forecast of $63.00 and a low of $34.00.
Shares of PayPal (PYPL) skyrocketed on Wednesday after Stripe and Advent submitted a $53 billion joint bid to acquire the payment platform, according to Reuters. The offer, backed by about $50 billion in committed financing from banks, values PayPal at $60.50 per share, a 28% premium over Tuesday’s closing price.
However, PayPal has not yet responded to the proposal, which follows an initial approach made in early April. Sources close to the bid told Reuters that Stripe and Advent are seeking to advance discussions in the coming weeks and would own the company equally if the deal is completed.
Meanwhile, PayPal stock remains down 18% year to date and 35% lower than one year ago, facing competition from Apple Pay, Block (trading under the ticker XYZ), Stripe, and buy now, pay later firms Affirm and Klarna. The stock has been unable to reclaim its 2021 all-time high of $310, set during the pandemic amid a low-interest-rate environment.
Consequently, should the takeover succeed, the combined entity could become a dominant force in the payment market, potentially sending PYPL shares higher. At press time, 24 Wall Street analysts offer a 12-month average price target of $47.80, with a high forecast of $63.00 and a low of $34.00.
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