PayPal Holdings (PYPL) is losing a key takeover catalyst after fintech giant Stripe and private equity firm Advent International ended their pursuit of the payments company, Bloomberg reported. The buyer group had offered $60.50 per share, valuing PayPal at more than $53 billion.
PayPal stock had already gained more than 40% this quarter as investors weighed the takeover possibility and the company reported stronger-than-expected earnings. Shares closed at $61.47 on Thursday, slightly above the $60.50-per-share offer.
The deal now appears to be off the table, leaving investors to focus on PayPal’s business and its turnaround.
Why Did the PayPal Deal Fall Apart?
The latest development follows weeks of discussions about a possible higher offer. PayPal’s board had viewed the $60.50-per-share proposal as too low. The talks also faced financing and regulatory concerns.
