Key Takeaways PayPal shares plummeted more than 12% during premarket hours following news that Stripe and Advent International terminated their $60.50-per-share acquisition proposal The buyou
Shares of PayPal (PYPL) plunged to approximately $53.20 during Friday’s premarket session, falling sharply from Thursday’s closing price of $61.47, following Bloomberg News’ confirmation that Stripe and Advent International officially terminated their acquisition efforts.
The acquisition group had presented an offer of $60.50 per share during mid-July. This proposal placed PayPal’s total valuation at around $53 billion. The company’s board of directors turned down the offer, characterizing it as insufficient.
The announcement triggered an overnight decline exceeding 12%, erasing the stock appreciation that accumulated following the initial takeover reports in July.
To provide perspective, PayPal reached a valuation of approximately $360 billion during its 2021 pandemic boom. The proposed $53 billion represented just a small fraction of that former valuation.
ADVENT, STRIPE CONSORTIUM REPORTEDLY DROPS PURSUIT OF PAYPAL $PYPL
— Wall St Engine (@wallstengine) August 28, 2026
Financial analyst Sam Badawi offered a straightforward assessment: the consortium’s withdrawal indicates their conviction that PayPal’s value doesn’t exceed the $53 billion offer.
However, not all market participants are disappointed by the deal’s collapse. Thomas Hayes, who manages portfolios at Great Hill Capital, openly commended the board for declining what he characterized as an undervalued proposal.
“Kudos to the $PYPL board for not allowing them to steal meaningful upside from current owners,” Hayes stated. He emphasized that the offer represented less than nine times free cash flow, which he considered significantly below appropriate valuation.
CEO Enrique Lores assumed leadership in March and has implemented changes rapidly. He restructured PayPal into three separate divisions: checkout, Venmo, and payments and crypto. This reorganization aims to streamline operations and enhance strategic focus.
In recent weeks, PayPal increased its 2026 profit projections and detailed efficiency initiatives as components of its transformation strategy. During the latest quarterly earnings discussion, Lores avoided addressing acquisition rumors but emphasized the company would “carefully consider any opportunity or strategic option” that delivers shareholder value.
Hayes encouraged the company to maintain independence while continuing execution: repurchase shares, develop the advertising business, and improve profit margins progressively.
PayPal has faced mounting challenges for several years. The post-pandemic deceleration in digital payment adoption created significant headwinds, while rivalry from Apple Pay and Google Pay has eroded its traditional market position.
The organization has counteracted these pressures through leadership transitions, staff reductions, and strategic emphasis on higher-margin offerings.
Before Friday’s decline, PYPL had gained merely 5.29% year-to-date. The trailing twelve-month performance showed an 11.74% decrease. The six-month performance was more encouraging, with shares climbing 33% prior to Friday’s selloff.
PYPL finished Thursday’s session at $61.47. During Friday’s premarket trading, shares dropped to approximately $53.20.
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