PayPal finally addressed the $53bn offer sitting on its table. Its answer was: not at that price.
The company gave its first public response on Tuesday’s Q2 earnings call, alongside a beat. Chief executive Enrique Lores would not comment on Stripe and Advent’s bid directly. He said only that PayPal would “carefully consider” any path that created “superior value for our shareholders than executing our current strategy,” he told investors. Then he made clear he did not think Stripe’s offer cleared that bar.
Open, but not at $60.50
PayPal has already rebuffed the bid as too low, and the results gave it cover to hold that line. Stripe and Advent are offering $60.50 a share. On his own LinkedIn, Lores said he was “encouraged by the progress” and had “strong conviction in our direction.”
He has a number to point to. Cantor values PayPal closer to $70 a share, well above the offer, with the stock trading around $58. So even a friendly read says $60.50 undersells the company, if the turnaround lands.
