PARTNERSHIPS | COMMUNITY | PODCAST | FRIENDS
Stripe And Advent Offer $53 Billion For PayPal
Please take our money // Illustration by Kate Walker
Stripe and PE firm Advent International are offering over $53 billion to acquire PayPal.
Why It Hits: The deal for PayPal would be the largest fintech M&A transaction ever and one of the few times a venture-backed firm has acquired an S&P 500 company, per Axios. Combining Stripe’s merchant expertise with PayPal’s consumer products could create the undisputed leader in digital commerce, processing roughly $3.7 trillion in payments annually.
Behind The Offer: While PayPal was once valued at a massive $360 billion in 2021, its worth has fallen back to Earth and is now about a tenth of that.
So, Stripe is trying to buy the dip, according to Reuters.
Stripe and Advent are offering $60.50 per share, a 28% premium over PayPal’s closing price on Tuesday (PayPal shares shot up 17% on the news).
They would each own an equal stake in PayPal if the deal goes through (at this point, PayPal has not responded to the overture — or an earlier one in April).
Adding PayPal to Stripe’s portfolio would allow the company to expand its digital wallet offerings, tap into 430 million direct consumer relationships, and add an e-commerce checkout button.
Additionally, a tie-up between Stripe and PayPal would allow more payments to be completed solely on their network, cutting credit card giants like Visa and Mastercard out of the equation — which means money saved.
Final Deal: While everyone knows PayPal, it’s not as big a player as it used to be, especially as Apple and Google have rolled out their own digital payment products. Additionally, the company has faced competition from a growing number of BNPL platforms, such as Affirm and Klarna.
Still, William Blair analyst Andrew Jeffrey said, “We do not think PayPal’s new CEO will likely embrace what could be viewed as a low-ball offer. If the current offer is an opening salvo, Stripe and Advent could go as high as $70 per share.”
In other words, this transaction could be as complicated as trying to reverse a PayPal charge.
Prediction: If Stripe and PayPal combine, be on the lookout for a new digital banking powerhouse that could rival traditional institutions like Chase and Bank of America for new customers.
Together with Function
Health Needs Better Data
The right decisions start with better data.
You analyze your business, your investments, and your habits. What about your health?
A Function membership gives you access to 160+ lab tests, generating thousands of data points to help you understand what’s going on inside your body.
That’s 5x more testing than a typical annual physical.
It covers your heart, hormones, thyroid, liver, kidneys, heavy metals, nutrients, inflammation, and more.
You’ll also get member pricing on MRIs and CT scans that screen for signs of cancer, prior stroke, aneurysms, fatty liver disease, and hundreds of other conditions.
With all of your data in one place, you can spot trends and take action sooner.
Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.