Although negotiations are still in their very early stages and the deal may not proceed, sources informed Bloomberg that Stripe is considering a deal to purchase all or part of PayPal Holdings.
The announcement coincides with Stripe’s annual letter, which provides business updates.Stripe’s tender offer, which values the company at $159 billiona 74% rise from the previous yearwas the major news.This time, Thrive Capital and Andreessen Horowitz are among the investors purchasing employee shares. According to the letter, Stripe will also repurchase some stock.
Stripe is once again among the most valuable private companies in the industry, according to the most recent estimate.Patrick Collison, the CEO and cofounder of Dublinbased Stripe, recently told CNBC that going public was not a top priority for him.With a market valuation of almost $40 billion, PayPal Holdings, which includes the company’s flagship product PayPal and its services in addition to other businesses like Venmo, is presently a publicly traded corporation.
Following news that Stripe was considering an acquisition, PayPal’s stock increased somewhat. Stripe chose not to respond.
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