Inframe News – PayPal shares fell sharply on Friday after Stripe and private-equity firm Advent International abandoned their pursuit of the payments company. The proposed takeover had been valued at around $53 billion, making it one of the biggest potential deals in the fintech industry. PayPal shares dropped 13% in premarket trading after news of the decision emerged.
The consortium had previously offered $60.50 per PayPal share, according to people familiar with the proposal cited by Reuters. The offer valued the company at more than $53 billion at the time. PayPal’s board had considered the initial bid inadequate, with negotiations reportedly focused on a possible higher price.
The proposed transaction would have brought together two major names in digital payments. Stripe has built a large payments-processing business serving online companies, while PayPal operates consumer and merchant payment platforms used around the world. A completed acquisition would have created a major combination across several parts of the digital payments market.
Interest in PayPal began gaining attention earlier this year after its share price suffered a prolonged decline. Bloomberg first reported in February that Stripe was considering buying part or all of PayPal. The talks later expanded into a potential deal involving Advent International as the private-equity partner.
The original offer came at a significant discount to PayPal’s peak market value. During the pandemic-driven online shopping boom in 2021, PayPal was valued at roughly $360 billion. The company’s market capitalization had fallen to around $53 billion by the latest trading session before the takeover talks ended.
PayPal has faced several challenges since the pandemic period ended. The surge in online shopping and digital payments slowed as consumers returned to physical stores, while competition from Apple and Google increased. Both companies have integrated payment services directly into their mobile ecosystems, putting additional pressure on PayPal’s core business.
The company has responded with management changes, workforce reductions and a stronger focus on businesses with higher margins. Enrique Lores became PayPal’s chief executive in March 2026 after previously leading HP. Under his leadership, PayPal has been working on a broader turnaround strategy and setting more specific financial targets for its businesses.
PayPal recently raised its 2026 profit forecast and outlined additional cost-saving measures. The company also reported quarterly results that helped push its shares higher in recent months. Its stock had gained nearly 30% after the initial takeover reports before falling sharply following the latest development.
The collapse of the deal removes a major source of takeover speculation surrounding PayPal. The company’s shares had closed at $61.47 on Thursday, above the $60.50 price attached to the earlier offer. In premarket trading on Friday, the stock fell to around $53.20 as investors reacted to the consortium’s decision.
PayPal has not ruled out considering strategic opportunities in the future. During its most recent earnings call, Lores said the company would evaluate opportunities that could create greater value for shareholders, without directly commenting on the Stripe and Advent discussions. Representatives for PayPal, Stripe and Advent declined to comment on the reported end of the takeover pursuit.
