According to sources quoted in the Wall Street Journal, the sale negotiations between PayPal and Stripe and the private sector Advent are on the rise, and the deal is likely to make progress in the coming weeks. PayPal did not comment on the report, while Stripe said he did not comment on market rumors.
Reorganization started.
This round of negotiations took place as PayPal pushed for a new round of adjustments. The current CEO Enrique Lores joined the company in March of this year, then launched the executive restructuring in April and divided the business into three operating blocks.
These are billing solutions and PayPal's main brand, consumer financial services and Venmo, and payment services and encryption. A month later, Lores indicated to investors that the company would refocus on basic business and hoped to “be a technology company again”.
Retrenchment plans synchronized.
In addition to the separation of business, PayPal is advancing its cost-cutting plan. The report mentions that the company is expected to reduce the total number of employees by about 20 per cent over the next two to three years, indicating that management is moving forward from both organizational and cost ends at the same time.
- March: Enrique Lores joined PayPal
- April: Disaggregation of senior management and operations initiated
- The next two to three years: 20 per cent of planned staff reductions
Sales discussion points to growth pressure.
The report did not disclose the structure of potential transactions, valuation areas or details of negotiations, but in terms of time, the sale discussions were closely linked to PayPal ' s current business rehabilitation plan. If transactions continue, they may become one of the most significant M&As in the global payment industry in recent years.
PayPal was founded in 1998 with early founding members Peter Thiel, Elon Musk, Max Levchin and Luke Nosek. Companies have been at the centre of Internet payments, but growth has continued in recent years against the backdrop of the fall of the electrician dividend and increased competition following the epidemic.