Aug 28 (Reuters) - PayPal shares slumped 13% in premarket trading on Friday, after Bloomberg News reported that a consortium of buyout firm Advent and payment processor Stripe had abandoned its pursuit of the fintech pioneer.
Stripe and private-equity firm Advent International made a $60.50-per-share bid for the payments company, once the crown jewel of American financial technology, Reuters had reported in July, citing sources.
The offer was a fraction of the roughly $360 billion valuation PayPal
commanded at the height of the pandemic-era boom in 2021. PayPal's board considered the initial offer as inadequate, sources have said previously.
The company has struggled to regain its footing as the pandemic-fueled surge in online shopping and digital payments faded and consumers returned to brick-and-mortar stores.
PayPal has also faced intensifying competition from Big Tech giants Apple and Google, which have expanded their digital payment services by integrating them into smartphone ecosystems, eroding its core market share.
Over the years, PayPal has responded to these pressures with sweeping changes, including management reshuffles, workforce reductions and a renewed focus on higher-margin products.
Last month, the company doubled down on its turnaround plan, raising its 2026 profit forecast and outlining cost-saving steps under newly appointed CEO Enrique Lores.
Its shares were last trading at $53.20 before the bell, after closing at $61.47 in the previous session. Analysts have said deal-related developments and news flow would likely drive PayPal's shares in near term.
In the company's most recent earnings call, Lores did not comment on the takeover speculation but said PayPal would carefully consider any opportunity or strategic option that it believes could create superior value for shareholders.
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
