PayPal, the world's largest payment services provider, plunged more than 14% at one point on August 28, and fell about 2% on Monday, August 31. Bloomberg reported, citing sources, that on August 27, a consortium of rival Stripe and private equity firm Advent International had called off talks to acquire PayPal for $60.5 per share, totaling over $53 billion, which was seen as a negative catalyst. The start of acquisition talks was reported on July 15, and the stock had risen more than 30% from the previous day's close to a recent high, but the two sides could not agree on the acquisition price. If the acquisition had succeeded, it would have been one of the largest leveraged buyouts in history. PayPal has been losing market share due to intensifying competition from Apple Pay and Google Pay, and may be forced to restructure on its own. The company is exploring a reorganization plan to separate its three business divisions, aiming to cut annual costs by $1.5 billion over the next two to three years. Investment bank Loop Capital Markets lowered its price target from $62 to $50, but said acquisition activity could reignite.
PayPal Holdings IncStripe/Advent consortium called off its $60.5-per-share acquisition of PayPal, removing the buyout catalyst and sending shares down.
Loop Capital Markets lowered its PayPal price target from $62 to $50, though it noted acquisition activity could reignite.
