Payment processor Stripe and private equity firm Advent have submitted a takeover offer to PayPal, valuing the payment service provider at 53 billion US dollars. Together, they want to pay 60.50 US dollars per PayPal share, 28 percent more than the shares were worth at the close of trading on Tuesday. Reuters reports, citing two people familiar with the matter. The takeover offer was reportedly submitted in early July, and PayPal has not responded. Stripe's interest in a PayPal takeover had already become known in the spring. However, things had gone quiet on the matter since then. Should the plan be implemented, both companies would hold a stake in a continuing PayPal.
No turnaround on the stock market so far
The takeover plans follow a dramatic decline in PayPal's share price in recent months. While a share was worth around 300 US dollars five years ago, it was only worth about 41 US dollars this year. The payment service provider's market value has therefore plummeted from around 360 billion US dollars to around 40 billion US dollars. Factors blamed for this include lost market share to Apple Pay and Google Pay. Furthermore, it was said that the company had failed to modernize its technology and keep up with rivals. Given its global importance, however, the payment service provider has also been considered significantly undervalued for months.
