PayPal had viewed July $60.50 offer as insufficient, sources told Journal
PayPal shares fell more than 15% in premarket trading, dropping to $52.50 a share, after Bloomberg reported that Advent International and Stripe had ended their pursuit of a takeover.
The decline erased a significant portion of a 42% gain the stock had posted so far this quarter on investor expectations that a takeover would be agreed.
The two suitors had jointly offered $60.50 a share for PayPal in July, a bid that would have valued the company at about $53 billion, The Wall Street Journal reported earlier this month.
PayPal viewed that July offer as insufficient, people familiar with the matter told the Journal.
Bloomberg, citing unnamed sources familiar with the situation, reported that the pair are no longer pursuing a deal.
PayPal’s market value has fallen sharply in recent years, after reaching a Covid-era peak of more than $280 billion during the pandemic — a level far above the roughly $53 billion implied by the abandoned bid.
The Bloomberg report said Advent and Stripe could reconsider their interest in PayPal if circumstances change, leaving open the possibility of a future approach.
PayPal did not respond immediately to a request for comment. Stripe said it does not comment on rumors or speculation, and Advent declined to comment.