PayPal Jumps 4% on $60.50 Buyout Offer from Stripe and Advent

PayPal Holdings (PYPL) shares surged 4% on Thursday after media reports emerged that the company received a joint buyout offer from Stripe and Advent International at $60.50 per share. Analysts and retail traders on Stocktwits widely view the price as too low for the payments giant.

Deal Details

• Buyers: Stripe and Advent International
• Proposed Price: $60.50 per share
• Total Value: Not disclosed
• Type: All-cash (per reports)
• Premium: Approximately 15% above the previous close

Rationale

According to analysts, Stripe aims to expand its footprint in digital payments and leverage PayPal's massive user base of over 400 million active accounts. Advent, on the other hand, sees PayPal as a long-term value play after its stock declined more than 70% from all-time highs.

Regulatory Hurdles

The deal is expected to face intense antitrust scrutiny in the U.S. and Europe due to the combined market power of the two companies. Data privacy concerns may also arise.

Impact on Stock

Retail traders on Stocktwits argue that the offer does not reflect PayPal's true value, citing growth in mobile payments and e-commerce services. Some analysts anticipate competing bids, which could drive the stock even higher.