TLDR
- PayPal shares closed nearly 7% higher after the report.
- Stripe was valued at $159 billion in a recent tender offer.
- PayPal has a market value above $40 billion, LSEG data shows.
- Both companies declined to comment on the acquisition report.
PayPal shares climbed nearly 7% on Tuesday after a report said Stripe is considering an acquisition of the company or parts of its business. The move came after Bloomberg News cited people familiar with the matter.
The report said Stripe has expressed preliminary interest in a potential deal. The matter is private, and the sources were not named. Reuters could not independently verify the report.
PayPal shares closed sharply higher following the news. The company has a market valuation of more than $40 billion, according to LSEG data.
Stripe was valued at $159 billion in a tender offer for employees and shareholders on Tuesday. The company is privately held and is one of the most valuable firms in the payments sector.
Report Cites Preliminary Interest From Stripe
Bloomberg News reported that Stripe is considering an acquisition of all or parts of PayPal Holdings Inc. The report said discussions are at an early stage and may not lead to a transaction.
Both companies declined to comment on the report. There was no official statement confirming negotiations or formal talks.
Stripe provides payment processing services for businesses. Its tools allow companies to accept payments, send payouts, and manage financial operations.
PayPal operates a global digital payments platform. It serves consumers and merchants through branded checkout, peer-to-peer transfers, and business payment solutions.
Leadership Changes at PayPal
The report comes weeks after PayPal announced a leadership change. Earlier this month, the company removed CEO Alex Chriss from his role.
Chriss had been appointed to guide PayPal through slower growth and rising competition. The company had issued a profit outlook for 2026 that fell below Wall Street estimates.
PayPal’s board said the speed of transformation and execution had not met expectations. Chair Enrique Lores was appointed president and chief executive.
The leadership change added to investor focus on PayPal’s strategy and performance. The stock had faced pressure in recent months before the latest report.
Payments Sector Faces Competitive Pressure
The digital payments industry has become more competitive in recent years. Traditional financial firms and fintech startups are expanding their offerings.
Stripe has grown rapidly by serving online businesses and technology firms. It competes with PayPal in online checkout and payment processing services.
PayPal remains a major player with a broad user base. However, it has faced slower revenue growth and tighter margins.
The report of Stripe’s interest comes as both companies navigate a changing market. It also comes as investors look for signs of consolidation in the sector.
There is no confirmation that a deal will proceed. The situation remains subject to change, and discussions may not result in a transaction.
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