PayPal reportedly rejected a takeover offer last month over concerns it undervalued the fintech.
Plans for a joint acquisition of PayPal have fallen through according to Bloomberg News, a month after the once fintech giant’s board reportedly rejected a $53bn-plus offer from Stripe and US private equity firm Advent International.
Talks of a potential Stripe acquisition of PayPal have swirled for months. According to reports last month, Stripe and Advent offered to buy PayPal at $60.50 per share, which would have valued the fintech at more than $53bn – representing a 28pc premium to the fintech’s shares in mid-July.
That offer was, however, reportedly rejected by PayPal’s board over concerns that it undervalued the company. Sources now tell Bloomberg that the two companies have abandoned talks.
Founded in the late 1990s, PayPal has struggled in recent years to modernise against emerging rivals in the payments space such as Apple, Google and Stripe. The fintech’s shares had dropped dramatically over recent years as a result, but picked up last month after promising reports of a takeover by the $159bn Stripe.
