Stripe Signals Strategic Stake in PayPal
Online payment processor Stripe has expressed interest in acquiring all or part of fellow digital payments pioneer PayPal, according to a report by Bloomberg News. Reuters also reported on the development.
Citing sources familiar with the matter who requested anonymity, the report said that Stripe, the world’s most valuable private payment company, is in the preliminary stages of evaluating the feasibility of acquiring PayPal. However, discussions remain at an early stage, and there is no certainty that a deal will ultimately be finalized.
Following the publication of the report, PayPal’s shares rose 6.7 percent on Tuesday, closing at 47.01 US dollars on the New York Stock Exchange. The surge brought the company’s market valuation to 43.3 billion US dollars. Neither Stripe nor PayPal provided immediate comments regarding the report.
In a separate development on the same day, Stripe’s valuation reached 159 billion US dollars through a tender offer allowing employees to sell shares.
Founded in the late 1990s, PayPal has recently faced intense competition from technology giants such as Apple and Google.
The company recently removed its Chief Executive Officer, Alex Chriss, and appointed Board Chair Enrique Lores as the new President and Chief Executive Officer. Lores is scheduled to assume office on March 1.
DBTech/BMT/OR
