According to Reuters, Stripe is moving forward with the private equity agency Advent International on PayPal ' s acquisition proposal, with a trade estimate of approximately $53 billion. Following the news, the PayPal drive rose by almost 15 per cent, and the market began to reassess the strategic position of the paying company.
Quote approximately $60.50 per share
According to sources, the price offered by Stripe and Advent was $60.50 per share and close to $50 billion in financing had been secured to support the transaction. If the acquisition continues, the parties plan to jointly hold PayPal.
However, negotiations are still ongoing and no final agreement has yet been reached. The landing of transactions also depends on the attitude of the board, the financing arrangements and the progress of regulatory approval.
PayPal, back to the M&A focus.
PayPal has continued to face a slowdown in payment growth over the past year, loss of profits and increased industrial competition. The information on this potential acquisition has given the market renewed attention to the value of its global payment networks, billing platforms and Venmo ecology.
If the deal is concluded, the business-paying infrastructure of Stripe will be combined with PayPal's consumer-paying network, which will form a large payment platform to cover online billing, transfers and commercial services, and will compete more directly with companies such as Visa, MasterCard, Apple Pay and Block.
Share prices reflect M&A expectations
The upturn indicates that investors are re-pricing PayPal at potential acquisition prices. Unlike the rebound previously driven by performance expectations, this round of increase is more the result of valuation revaluations generated by business transactions themselves.
The next focus of the market will be on the adjustment of offers, the stability of financing and the smooth progress of regulatory review. Any new progress in negotiations could continue to magnify PayPal stock price volatility.