PayPal’s board is evaluating a $53 billion takeover bid by rival Stripe and private equity firm Advent International, but sees the offer as undervaluing the company. The bid, which was submitted earlier this month, would create one of the world’s largest global online payments companies, processing some $3.7 trillion of annual volume.
Regulatory Hurdles
The board is weighing factors beyond price, including the certainty of financing, potential regulatory hurdles, and what could be a lengthy timeline to complete any transaction. The consortium has provided a roughly $50 billion financing package, but PayPal’s board is still evaluating the bid.
Stripe and Advent are contributing $17 billion in equity for the offer, and would jointly own PayPal, with each holding an equal stake rather than breaking up the company. However, they have also considered possible remedies should the bid run afoul of antitrust regulators, including separating PayPal’s Braintree business or other assets and transferring them to Advent.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
