PayPal Board Views $60.50 Share Offer as Inadequate Despite Market Price Below It
PayPal’s board reportedly considers a $60.50-per-share cash offer from Stripe and Advent International inadequate, despite the stock currently trading at around $56. The bid values PayPal at over $53 billion but has not prompted public comments or negotiations from the company. Analysts have an average price target of about $53—below both the current share price and the proposed deal value. The market appears skeptical, pricing in risks such as regulatory hurdles or financing issues that could derail the acquisition. The stock is trading below the offer price due to these concerns. Meanwhile, PayPal’s recent financial performance has been lackluster: transaction margin growth was just 3%, active accounts grew only slightly year-over-year and quarter-over-quarter, and full-year guidance includes a potential decline in earnings per share. The situation highlights conflicting valuations from different market participants—board members see value above $60.50, the stock reflects uncertainty around deal execution at about $56, while analysts suggest intrinsic value is below current levels.
Tickers: $PYPL
Topics: board response M&A stock valuation