PayPal Stock Rockets 16% on Reported $53 Billion Stripe-Advent Buyout Bid
PayPal Holdings, Inc. (PYPL) stock jumped roughly 16% on Wednesday after news broke that a buyout consortium wants to take the payments giant private. The rally instantly made PayPal the day’s standout mover, dwarfing gains across the broader market.
Who’s Behind the Offer
Payments rival Stripe and private equity firm Advent International jointly submitted the proposal, according to a Reuters report citing two people familiar with the matter. Under the proposed terms, the two suitors would each hold a 50% stake in PayPal. Furthermore, the bidders lined up roughly $50 billion in committed bank financing to back the deal, signaling they mean business.
Breaking Down the Numbers
The consortium offered $60.50 per share, a price that values PayPal at more than $53 billion. The bidders reportedly submitted the offer earlier this month, though it only surfaced publicly on Wednesday. When approached for comment, both PayPal and Stripe declined, and Advent had not responded by publication time.
Why PayPal Became a Target
PayPal entered 2026 in a vulnerable spot, which likely drew the suitors’ interest. The stock had already fallen 18% year to date and sat 35% below its year-ago level heading into the news. Meanwhile, fierce competition steadily eroded PayPal’s dominance: Apple (AAPL) Pay, Block (XYZ), Stripe itself, and buy-now-pay-later players like Affirm (AFRM) and Klarna crowded the market and squeezed margins. As a result, the stock never reclaimed its 2021 pandemic-era peak of $310.
The Bull Case: Burry Says Bid Falls Short
Notably, “Big Short” investor Michael Burry — who owns PayPal shares — pushed back hard against the offer price. He argued the bid undervalues the company and predicted the suitors will need to raise it. “I believe the bid will have to rise,” Burry wrote on Wednesday, adding that the company trades “well below intrinsic value” and that any winning bid should climb higher to account for a control premium.
The Bottom Line
The reported approach thrusts PayPal into play and hands long-suffering shareholders a sharp rebound. However, with an influential investor like Burry already calling $60.50 too cheap, negotiations could stretch on — and the final price could move higher before any deal closes.
