PayPal Shares Drop After Stripe and Advent Abandon $53 Billion Takeover Plan
PayPal (NASDAQ:PYPL) shares fell by over 12% after private equity firm Advent International and payment processor Stripe abandoned their planned $53 billion acquisition of the company. The consortium had previously offered to buy PayPal at a premium, but Bloomberg reported that they have officially dropped the bid. This decision comes amid declining share prices for PayPal, which has lost more than 80% in value over five years due to increased competition and shifting market dynamics. In Q2 2026, PayPal's net income fell by 11%, despite a 5% increase in GAAP revenues. The company is undergoing restructuring under CEO Enrique Lores, including splitting into three business units with the goal of achieving $1.5 billion in cost savings over several years. Despite these challenges, PayPal announced plans to pay dividends for shareholders on September 25. Following news of the abandoned acquisition, Mizuho Securities and Loop Capital both reduced their price targets for PYPL stock while maintaining neutral or hold recommendations.
Tickers: $PYPL