TLDR
- PayPal stock fell over 12% in premarket trading after Stripe and Advent International abandoned their $60.50-per-share takeover bid
- The consortium’s offer valued PayPal at roughly $53 billion, far below its 2021 pandemic-era peak of ~$360 billion
- PayPal’s board had previously rejected the bid as inadequate, with analysts noting it was less than 9x free cash flow
- Portfolio manager Thomas Hayes backed the board’s decision, saying it preserved “meaningful upside” for existing shareholders
- CEO Enrique Lores has reorganized PayPal into three units: checkout, Venmo, and payments and crypto, as part of a broader turnaround
PayPal (PYPL) stock was trading around $53.20 in premarket Friday, down from a Thursday close of $61.47, after Bloomberg News reported that Stripe and Advent International had formally walked away from their takeover pursuit.
The consortium had put forward a bid of $60.50 per share in mid-July. That valued PayPal at approximately $53 billion. PayPal’s board rejected it, calling the offer inadequate.
The news sent the stock tumbling more than 12% overnight, wiping out the gains that had built up since the takeover story first broke in July.
For context, PayPal was valued at roughly $360 billion at its pandemic-era peak in 2021. The $53 billion bid was a fraction of that.
ADVENT, STRIPE CONSORTIUM REPORTEDLY DROPS PURSUIT OF PAYPAL $PYPL
— Wall St Engine (@wallstengine) August 28, 2026
Market commentator Sam Badawi put it plainly: the consortium’s exit suggests they simply do not believe PayPal is worth more than that $53 billion price tag.
Not everyone is upset about the deal falling apart, though. Thomas Hayes, portfolio manager at Great Hill Capital, publicly praised the board for not accepting what he called a steal.
“Kudos to the $PYPL board for not allowing them to steal meaningful upside from current owners,” Hayes said. He noted the bid came in at less than nine times free cash flow, which he viewed as well below fair value.
The Turnaround Under Lores
CEO Enrique Lores took over in March and has been moving fast. He reorganized PayPal into three distinct units: checkout, Venmo, and payments and crypto. The goal is to simplify operations and sharpen focus.
Last month, PayPal raised its 2026 profit forecast and outlined cost-saving steps as part of the turnaround plan. During the most recent earnings call, Lores declined to comment on takeover speculation but said the company would “carefully consider any opportunity or strategic option” that creates value for shareholders.
Hayes urged the company to stay independent and keep executing: buy back stock, grow the ad business, and expand margins over time.
Competition Weighing on the Stock
PayPal has been under pressure for years. The post-pandemic slowdown in digital payments hit hard, and competition from Apple Pay and Google Pay has eaten into its core market.
The company has responded with management changes, workforce cuts, and a push toward higher-margin products.
Year-to-date, PYPL was up just 5.29% heading into Friday. Over the past year, it had declined 11.74%. The six-month picture was better, with the stock up 33% before Friday’s drop.
On Thursday, PYPL closed at $61.47. By Friday premarket, it had fallen to around $53.20.
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