PayPal Holdings Inc. (NASDAQ:PYPL) shares are trading lower following reports suggesting that a consortium of Advent and Stripe walked away from its pursuit of PayPal.
- PayPal stock is feeling bearish pressure. Why is PYPL stock dropping?
Advent, Stripe Abandon $50 Billion Bid
According to Bloomberg, buyout firm Advent and payment processor Stripe have decided to abandon their pursuit of PayPal, citing people familiar with the matter. The group is no longer pursuing a deal for the company, according to the report, which had previously seen an offer of more than $50 billion. Representatives for Advent, PayPal, and Stripe declined to comment.
Bloomberg first reported in February that Stripe was considering an acquisition of parts or all of PayPal after a stock slump had wiped out a chunk of its value. The takeover interest helped the stock recover, with PayPal shares jumping more than 40% this quarter to give the company a market value of about $52.6 billion. The Wall Street Journal reported this month that PayPal had found the initial bid insufficient, and the two sides were negotiating a potentially higher price.
Bloomberg noted the situation remains fluid, and Advent and Stripe could still return with a renewed offer at a later date.
Paypal Shares Fall
PYPL Price Action: At the time of publication, PayPal shares are trading 14.05% lower at $52.83, according to data from Benzinga Pro.
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