PayPal shares jump 7% as Stripe weighs PayPal acquisition
Stripe is considering buying all or part of PayPal, according to a new Bloomberg report, adding new initiatives to manage speculation surrounding the beleaguered payments giant.
The discussions are described as preliminary, and there is no doubt that the transaction will materialize.
The report comes hours after Stripe released its annual letter announcing that it had reached a $159 billion valuation in its recent employee auction. The company announced total payment volume of $1.9 trillion for 2025 and highlighted accelerating growth among enterprise customers, stablecoin activity and AI-driven business tools.
Earlier this week, Bloomberg reported that PayPal is attracting takeover interest following its long-term stock decline and slowing payments growth. Shares of PayPal jumped nearly 12% before the freeze on Monday, then rallied again after news of Stripe's interest, rising nearly 7% on Tuesday.
In the year Founded in the late 1990s, PayPal was an early mover in digital payments, but has struggled to update its technology stack as competitors like Apple and Alphabet expand their payment offerings. The company's latest quarterly results missed analysts' estimates, with profit and revenue both coming up short and fee growth continuing to slow.
Founded by Patrick and John Collison, Stripe has positioned itself as one of the most valuable private fintech companies globally. In a recent interview, Stripe president John Collison acknowledged PayPal's challenges but declined to comment on the acquisition's terms, saying he could not discuss M&A's speculation.
PayPal is also making leadership changes. Enrique Llores is set to become president and CEO on March 1, replacing Alex Criss, who stepped down this month.
