PayPal's board of directors is scheduled to meet on Monday to discuss a $53 billion unsolicited takeover bid from rival payment processor Stripe and private equity firm Advent International. According to sources familiar with the matter, the board currently views the $60.50-per-share offer as insufficient. The bid comes as PayPal faces stagnant user growth and increased competition from services like Apple Pay, which now leads the U.S. mobile payment market.
The company's market valuation has decreased significantly from its 2021 peak of $360 billion. Analysts from Clear Street and Mizuho suggest that PayPal was slow to adapt to mobile-first payment trends and has struggled to monetize assets like Venmo effectively. In response to these challenges, PayPal has appointed three different CEOs over the last four years, with current CEO Enrique Lores taking the position in March.
While Stripe and Advent International have reportedly secured $50 billion in bank financing and $17 billion in equity to potentially increase their offer, PayPal’s board is weighing the bid against its internal turnaround plan. The company is expected to release its quarterly earnings report later this month, which analysts say will likely influence the final negotiation price. PayPal has declined to comment on the potential merger or the board's internal deliberations.