PayPal sale talks with Stripe follow reported offer worth more than $53 billion

PayPal sale talks with Stripe and private-equity firm Advent International are under way, according to people familiar with the matter cited by The Wall Street Journal. The reported discussions follow a July proposal of $60.50 a share, valued at more than $53 billion, that PayPal was reported to have viewed as insufficient.

The Journal reported on Aug. 14 that the parties have since been discussing a potentially higher price. No agreement, accepted revised offer or final terms have been announced, and the companies have not confirmed the reported negotiations.

PayPal declined to comment when contacted by PYMNTS. A Stripe spokesperson told PYMNTS that the company does not comment on rumours or speculation, while Advent did not immediately respond, according to the publication.

What was Stripe and Advent’s reported offer for PayPal?

Reuters reported on July 14, citing two people familiar with the matter, that Stripe and Advent had jointly proposed paying $60.50 a PayPal share. That offer represented about a 28% premium to PayPal’s closing share price on the preceding Tuesday, Reuters said.

At that point, Reuters reported that the bidders had not received a response from PayPal and were seeking to advance discussions in the following weeks. The subsequent Journal report said some people familiar with the matter said PayPal considered the price inadequate and that negotiations had continued.

How would the proposed ownership structure work?

The July proposal contemplated Stripe and Advent jointly owning PayPal in equal stakes rather than dividing the company, according to Reuters. The news agency also reported that about $50 billion of bank financing had been committed for the bid, citing one person familiar with the matter.

Those terms describe the July approach, rather than any agreed transaction. Reuters said then that there was no certainty the proposal would result in a deal; the later Journal report likewise establishes only that the sides were discussing a potentially higher price.

A combination would bring together two major online-payments businesses. Reuters reported that Stripe has concentrated largely on merchant services, while PayPal brings consumer payment relationships, including its Venmo network. The same report said a combined company would process about $3.7 trillion in annual payment volume.

For now, the only reported per-share figure is the $60.50 July proposal. Whether talks yield a revised offer or a transaction remains uncertain.

This story draws on original reporting from PYMNTS.