A consortium led by private equity firm Advent and payments processor Stripe has stopped pursuing a deal for PayPal Holdings.
The consortium is no longer working on an acquisition of PayPal, Bloomberg reported citing sources familiar with the development.
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The consortium had previously offered more than $50bn for the payments company.
Earlier reports indicated that PayPal considered the initial proposal from Advent and Stripe insufficient.
Sources told Bloomberg said the situation remains fluid. They added that Advent and Stripe could still return at a later date.
PayPal, founded in the late 1990s, was an early participant in digital payments. In recent years, the company has faced challenges in modernising its payments technology.
Competitors including Apple and Alphabet have gained market share during that period.
Earlier this year, reports said Stripe was considering acquiring all or parts of PayPal after a decline in PayPal’s share price reduced its market value.
In July, Reuters reported that Stripe and Advent International made a joint offer to acquire PayPal for $60.50 per share. The deal would have valued the payments company at more than $53bn.
At that time Electronic Payments International reached out to Stripe and Advent for confirmation. However, Advent declined to comment, while Stripe said it does not comment on rumours or speculation.
Following reports of takeover interest, PayPal shares rose more than 40% this quarter.
However, Reuters reported that PayPal shares fell 12% in morning trading on Friday (28 August) as the Advent-Stripe consortium stepped away from the bid.
