PayPal board says $53bn Stripe Advent offer too low

A consortium comprising the privately held payments technology company Stripe and the private equity firm Advent International has made a joint takeover offer for PayPal valued at approximately $53 billion, but the target company's board has determined the bid undervalues the firm. The proposal, which values PayPal at $60.50 per share, represents a roughly 28% premium over its closing price before news of the approach became public.

According to people familiar with the matter, PayPal's board views the offer as inadequate, believing it fails to capture the potential upside if the company's own internal turnaround plan succeeds. The board has not yet issued a formal response but is actively weighing the bid against that strategic plan. Directors are also said to be evaluating the certainty of the consortium's financing, potential antitrust obstacles, and the lengthy timeline required to complete a transaction of this size.

The financing package points to the seriousness of the bid. JPMorgan and Morgan Stanley have reportedly assembled roughly $50 billion in committed debt to back the acquisition, with Stripe and Advent contributing about $17 billion in equity. Under the proposed...