Overview
- The consortium led by Stripe and private‑equity firm Advent formally walked away on Friday, August 28, 2026 after failing to raise its $60.50‑per‑share offer that PayPal’s board judged too low.
- News of the collapse sent PayPal shares down roughly 13–16% in premarket and early trading, erasing much of the rally that began when takeover interest surfaced in July.
- Reports say the proposal relied on about $50 billion of bank financing coordinated by JPMorgan and Morgan Stanley, and Block left early discussions before the formal offer.
- PayPal, under CEO Enrique Lores since March 2026, is pursuing a three‑unit reorganization, cost cuts and AI initiatives as its board held out for a higher valuation instead of accepting the bid.
- With the deal dead for now, the company must prove its turnaround to win investors back and any future takeover would face heavy financing and regulatory hurdles plus scrutiny over the wide gap with PayPal’s 2021 peak valuation.