PayPal Stock Plunges as Stripe and Advent Withdraw Buyout Offer

M&A · Partnership
โดย The Motley Fool·US·Read original
Summary · why it matters

PayPal Holdings stock crashed 12.2% to below $54 per share on Friday after reports that Stripe and Advent had withdrawn their $53 billion buyout offer. The consortium, which included Block, had proposed $60.50 per share, a 28% premium but only 11.3 times earnings, and PayPal's demand for a higher price led the bidders to walk away. Even at the lower price, PayPal shares remain above their pre-offer levels, and the stock still trades at less than 12 times earnings and about 8 times free cash flow. With a dividend yield near 1% and expected annual earnings growth of at least 6% over five years, the company may still attract another suitor or remain a value opportunity.

Impact on stocks 3

Digital Finance & Tokenization▼ · 2 stocks
PayPal Holdings Inc
PYPL
▼ NegativeCapitalrelevance

Stripe and Advent withdrew their $53 billion buyout offer, causing PayPal stock to plunge 12.2%.

Block, Inc
XYZ
± MixedCapitalrelevance

Block was part of the consortium that withdrew its buyout offer for PayPal, but the impact on Block is unclear.

Artificial Intelligence▲ · 1 stocks

Off-coverage companies 2

Advent InternationalPrivate▼ Negative
Capitalrelevance

Advent withdrew its buyout offer for PayPal, ending the potential acquisition.

Stripe, Inc.Private▼ Negative
Capitalrelevance

Stripe withdrew its buyout offer for PayPal, ending the potential acquisition.

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