PayPal Stock Falls After Failed Buyout Talks
PayPal Holdings (NASDAQ: PYPL) stock dropped sharply following the collapse of a potential $53 billion buyout deal with private firms Stripe and Advent. The bidders had previously offered to acquire PayPal at $60.50 per share, representing an 11.3 times earnings valuation. However, PayPal reportedly sought higher terms that were not met by the buyers, leading them to withdraw their offer. As of Friday afternoon, PayPal's stock was down over 12%, trading below $54 — significantly lower than the proposed buyout price but still above its pre-buyout interest level. Despite this setback, analysts suggest that even without a deal, the stock remains relatively undervalued based on earnings and free cash flow metrics. The failed acquisition has not entirely left investors empty-handed; PayPal's valuation is seen as potentially attractive for future buyers or long-term shareholders due to its strong fundamentals.
Topics: buyout attempt M&A stock price drop