Overview
- The takeover effort by payments firm Stripe and private-equity firm Advent was reported abandoned on Friday, according to people cited by Bloomberg.
- Bloomberg said the consortium had offered more than $50 billion and PayPal’s board deemed that amount insufficient.
- The news sent PayPal shares down roughly 14 percent in after-hours trading on Blue Ocean after a quarter that had seen the stock rally more than 40 percent on takeover hopes and stronger Q2 results.
- The failed bid puts pressure on CEO Enrique Lores to deliver a standalone turnaround after the company lost market share to Apple Pay, Google Pay and fintech rivals and struggled to modernize its technology.
- If completed, the deal would have ranked among the largest leveraged buyouts, and Bloomberg reported the bidders could return if circumstances change, so investors will watch corporate strategy and any renewed talks closely.