Stripe-Advent Abandon $53B PayPal Bid; Stock Plunges 12% Overnight
PYPL sits 60% above its 52-week low of $38.46.
Summary
Stripe and Advent International have formally walked away from their $53 billion takeover bid for PayPal, sending shares down 12% overnight to below $54. The consortium's exit confirms the deal is dead after PayPal's board rejected the $60.50 per share offer in July, citing financial and regulatory concerns. The stock had surged 17% on the initial bid announcement, so this move erases those gains and leaves PayPal trading near its pre-bid levels. Portfolio manager Thomas Hayes defended the board's decision, arguing the offer undervalued the company at less than 9x free cash flow, but the market's reaction suggests investors are disappointed the takeover premium is gone. PayPal now faces renewed pressure to execute its turnaround under CEO Enrique Lores, with the stock up only 5% year-to-date and down 12% over the past year.
At the time of this announcement, PYPL was trading at $61.48 on NASDAQ in the Finance sector, with a market capitalization of approximately $52.6B. The 52-week trading range was $38.46 to $79.22. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.