PayPal (PYPL) Stock Soars After Acquisition News, Is It Still Worth Buying?

PayPal (PYPL) shares jumped 17% after Reuters reported that Stripe, the fintech giant founded by Patrick and John Collison, and Advent International submitted an acquisition offer worth $60.50 per share, or about $53 billion, a 28% premium to the previous closing price.

Trading volumes surged 446% above the three-month average.

However, a PayPal board meeting is scheduled for July 20 to discuss the offer, and there is no certainty that the deal will go through.

This article will cover the details of the offer, the prospects for acquisition, and whether PayPal stock is still worth buying.

Key Points

• PayPal (PYPL) shares jumped 17% after Reuters reported that Stripe and Advent International had submitted an acquisition offer worth $60.50 per share, or about $53 billion.

• If the deal goes through, the combination of Stripe and PayPal would create a payments giant with an annual transaction volume of $3.7 trillion.

• A PayPal board meeting is scheduled for July 20th to discuss the offer. However, analysts and retail investors consider the $60.50 offer too low.

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Details of Stripe's Acquisition Offer to PayPal

PayPal Stock Price. Source: Google Finance

Stripe and Advent International have bid $60.50 per share, with about $50 billion in bank funding already committed.

Under this proposal, Stripe and Advent would jointly own PayPal in equal shares, rather than splitting up the company.

Block (the company behind Cash App) is also reportedly potentially joining with a $17 billion equity contribution.

This offer comes after an initial approach in April 2026, but PayPal has not yet responded.

Stripe and Advent are working to advance discussions in the coming weeks.

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Why Are Stripe and Advent Interested?

Stripe has been dominant on the merchant side, but lacks a strong consumer brand. PayPal added over 430 million consumer accounts and direct banking relationships through Venmo.

The combination of Stripe and PayPal will create one of the world's largest online payments companies, processing approximately $3.7 trillion in annual payment volume.

This deal also has the potential to bring PYUSD (stablecoin PayPal) and Venmo onto the blockchain, accelerating the adoption of on-chain payments.

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Pros and Cons of Acquisition

Pro:

- The current PYPL stock price (around $55.52) is still below the $60.50 bid, leaving around 10% arbitrage room.

- PayPal trades at a very low P/E ratio (~8.5x), well below the industry average and competitors like Visa (24.7x) and Mastercard (25.3x).

- PayPal remains a powerful cash-generating machine with a dominant market position in digital payments.

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Against:

- Analysts are still divided: the consensus rating is "Hold" with an average price target of $51.38, lower than the current price.

- PayPal has lost more than 40% of its market value in the last 12 months due to competition from Apple Pay and Google Pay.

- If the deal fails, PYPL's share price could potentially fall back to pre-announcement levels.

- William Blair said the $60.50 offer may be too low and suggested buyers could go as high as $70 per share.

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Investment Prospects and Strategies

For short-term traders, there is an arbitrage opportunity because the current price is still below the bid price.

However, there is a big risk if the deal falls through or negotiations fail.

For long-term investors, PayPal remains a company with strong fundamentals and a dominant market position.

However, intense competition and slowing growth remain challenges.

Some analysts consider this offer too low, with 35% of retail investors estimating PYPL's fair value at above $100.

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Conclusion

News of the Stripe-Advent acquisition has pushed PayPal shares to their highest level in some time.

The $60.50 offer is attractive, but the chances of this deal coming to fruition are still 60% according to Polymarket.

Investors should pay close attention to PayPal's board meeting on July 20 and any developments in negotiations over the coming weeks.

For those who already own shares, waiting for clarity on the deal may be wiser. For those looking to enter, the risks remain high given the ongoing uncertainty.

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FAQ

What is the acquisition offer for PayPal?

Stripe and Advent offered $60.50 per share or about $53 billion, a 28% premium to the previous closing price.

When is the PayPal board meeting?

Scheduled for July 20, 2026 to discuss this offer.

How much does PYPL cost now?

Around $55.52 after a 17% rise, it is still below the $60.50 bid price.

Is this deal sure to happen?

It's uncertain. A board meeting will determine the next course of action. Polymarket gives a 60% probability.

What do analysts think about PayPal stock?

The consensus is “Hold” with an average price target of $51.38, below the current price.

What do retail investors think?

35% of retail investors rate PYPL above $100 per share.

Why is Stripe interested in buying PayPal?

Stripe wants to acquire PayPal and Venmo's 430 million customers to complement its merchant business.