Stripe is exploring a possible deal to buy some or all of PayPal Holdings, according to sources cited by Bloomberg, although the discussions are at a very early stage and may not result in a transaction. The report surfaced the same day Stripe released its annual letter, which outlined a new tender offer that values the company at $159 billion, a 74% increase from last year.
Early Talks And Market Reaction
Bloomberg reported that Stripe is considering an acquisition involving PayPal Holdings, which includes the PayPal payments service as well as other businesses such as Venmo. The sources said the talks are preliminary and that a deal may not happen. Following the report, PayPal’s stock rose slightly. Stripe declined to comment on the report.
Tender Offer And Valuation Update
In its annual letter, Stripe said it is making a tender offer that values the company at $159 billion. The company said this represents a 74% increase from its previous valuation. Investors buying employee shares in this round include Andreessen Horowitz and Thrive Capital. Stripe also said it will buy back some of its own stock as part of the process.
Company Positions And Public Market Context
The latest valuation keeps Stripe among the most valuable private companies in the industry. Stripe is based in Dublin, and its co-founder and chief executive, Patrick Collison, told CNBC recently that taking the company public is not a priority. PayPal Holdings is a publicly traded company with a market capitalization of around $40 billion.
Featured image credits: FirstDirect360
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