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Digital payments giant PayPal Holdings is not currently pursuing acquisition talks with Stripe or any other buyer, although recent reports suggest that the fintech company may take over.
In a Semafor report, executives at the payments company have spent months with advisers to prepare defenses against ‘an activist investor campaign or an uninvited acquisition bid.
According to Bloomberg this week, privately held payments company Stripe was looking at a possible acquisition of all or part of PayPal. Semafor said such a deal seems unlikely, noting that he will take over next week by ‘a new chief executive — something unusual if i was to see re-sell or restructuring soon after the near term.
Former Chief Executive Alex Chriss (left earlier this year) began to prepare defensively against a potential activist campaign, which started with the departure of former Chief executive Alex Christophers. The role will be taken over next week by his successor, Enrique Lores, who is expected to take the title.
The report added that any transaction would face significant financing challenges if it was to be completed in a deal with . Stripe, a private company, does not use publicly traded stock as acquisition currency and would likely need substantial debt commitments to pursue negotiated deal.
Private companies rarely acquire large public firms without complex structures or clear support from the target’s board and management.
Stripe’s interest in PayPal is seen as strategic, driven by PayPal’ a large global customer base and established payments infrastructure. Still, formal talks would likely depend on leadership stability at the company before progressing forward with any formal discussions.
Thanks for reading PayPal not pursuing sale despite report of Stripe interest
