PayPal Board Believes Stripe and Advent's $53 Billion Acquisition Offer Is Too Low

TechFlow News, July 17. According to Reuters, the PayPal Board of Directors believes that the $53 billion acquisition proposal ($60.50 per share) jointly submitted by Stripe and private equity firm Advent International undervalues the company, and has concerns regarding regulatory approval risks and financing certainty, and has not yet formally responded to the proposal. The PayPal Board of Directors believes that if management successfully executes the existing transformation strategy, the company's future potential value will far exceed the current offer.

Meanwhile, the acquirers have obtained approximately $50 billion in financing support from JPMorgan Chase and Morgan Stanley, with Stripe and Advent contributing a total of $17 billion in equity. It is reported that if the two parties encounter antitrust obstacles, they may consider divesting assets such as Braintree under PayPal to Advent. Despite differences, Stripe and Advent are still regarded as the most serious potential buyers at present, and negotiations are expected to continue for some time. PayPal will release its quarterly earnings report on July 28, and the market will closely monitor the growth of its core checkout business.