Stripe and Advent drop pursuit of $50-plus billion PayPal takeover

According to people familiar with the matter, the group headed by Stripe together with Advent has abandoned its plan to buy PayPal, a move that would have ranked among the largest leveraged buyouts at a valuation well above $50 billion. In July, when PayPal traded at a record low and was valued at $40 billion, Stripe and Advent reportedly put forward an offer of about $53 billion, which the target rejected, prompting the suitors to contemplate a higher bid.

However, PayPal’s latest quarter outperformed forecasts, sending its share price up roughly 40 percent and potentially pushing the acquisition price beyond what a leveraged transaction could sustain. Since March, PayPal’s new chief executive Enrique Lores has been reorganizing the firm into three divisions—checkout, Venmo, and payment/crypto—aimed at reviving performance. A merger would have lessened Stripe’s dependence on Visa and Mastercard while giving it access to Venmo’s checkout flow and crypto capabilities.

While the current pursuit is paused, the consortium may revisit a bid later. The decision reflects shifting market dynamics and the challenges of financing a massive leveraged deal.