PayPal Draws Takeover Interest as Share Price Tumbles
PayPal has received unsolicited acquisition interest from multiple potential buyers, according to Bloomberg, as the digital payments giant grapples with a stock price that has nearly halved over the past year.
The company has held meetings with banks representing suitors, Bloomberg reported, citing sources. At least one major rival is interested in acquiring PayPal entirely, while other parties are exploring purchases of specific assets. The interest remains preliminary and may not result in a transaction.
The takeover overtures come weeks after PayPal appointed Peter Lores, formerly of HP, as CEO. The board move signals concern that the brand is losing ground to Big Tech competitors including Apple and Google. Lores took the helm following disappointing earnings results, which were pressured by weaker US retail spending and slower growth in PayPal's core branded checkout segment.
For CFOs evaluating payment infrastructure: a PayPal acquisition would reshape the competitive landscape and potentially affect pricing, integration roadmaps, and vendor relationships across the industry. Watch for formal bids or deal announcements in coming weeks.
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