PayPal Holdings shares fell sharply on Aug. 28, 2026, after Bloomberg reported that a consortium of private equity firm Advent International and payments company Stripe had abandoned its pursuit of taking the company private in a deal once valued at more than $53 billion.
Key facts
- Offer: $60.50 per share in cash, valuing PayPal at more than $53 billion
- Bidders: private equity firm Advent International and payments company Stripe
- Bloomberg reported Aug. 27 into Aug. 28, 2026, that the pursuit had been dropped
- Offer first reported publicly on July 15, 2026; talks reportedly resumed in mid-August
- Stock fell an estimated 12% to 17% on Aug. 28, 2026, depending on which point in the trading day is measured
- PayPal’s market capitalization stood at roughly $52.6 billion after the drop (Yahoo Finance)
- PayPal, Stripe and Advent International have all declined to comment on the report
What the offer was
The Advent-Stripe consortium had offered $60.50 per share in cash for PayPal, valuing the company at more than $53 billion. That offer was first reported publicly around July 15, 2026, and talks reportedly picked back up in mid-August after an earlier lull — before Bloomberg’s report, published Aug. 27 into Aug. 28, that the pursuit had been dropped altogether.
No one has confirmed it, on the record
PayPal, Stripe and Advent International have all declined to comment on the report that the deal is off. As of August 28, 2026, none of the three has issued a statement, press release or regulatory filing confirming — or denying — that the acquisition talks have ended.
Media accounts describe PayPal’s board as having viewed the offer as inadequate and as having raised concerns about financing and regulatory hurdles for a deal of this size. PayPal has not confirmed that account, and the specific reasons the two sides could not reach terms have not been established on the record.
What it means for the stock
The drop was steep, but the exact size of it is not something outlets agree on. Reports put the decline anywhere from roughly 12% to as much as 17%, depending on which point in the trading day — premarket, after-hours or the regular session — was being measured. Whatever the precise figure, the move erased much of a rally that had built up over the summer: PayPal shares had climbed roughly 40% to 50% this quarter, a run market commentators had largely credited to takeover speculation.
Yahoo Finance reported PayPal’s market capitalization at roughly $52.6 billion after the drop. That figure is close to the deal’s own roughly $53 billion valuation, but it is not the same number. The deal’s $53 billion figure was calculated from the $60.50-per-share offer price, not from PayPal’s current trading price.
Not everyone read the news as bad for shareholders. A portfolio manager quoted by Benzinga argued the board was right to view the offer as too low, framing the collapse as PayPal protecting its own long-term value rather than settling for an inadequate offer.
Wall Street’s published price targets on the stock mostly predate the news. Truist raised its target on PayPal to $62 from $59 earlier in August, before the deal collapsed and before the news that reset the stock’s trajectory.
The takeover story aside, PayPal’s Q2 total payment volume was $486.4 billion, while PayPal and Venmo began integrating with U.S. university tuition-payment systems through Illumia, Nelnet Campus Commerce and TouchNet beginning around Aug. 19, with services going live at institutions including Bellarmine University, Butler University, Kansas State University, Michigan State University and Texas Tech University. Enrique Lores has served as president and CEO since March 1, 2026, after Alex Chriss ceased serving in the role on Feb. 2. In its most recent quarter, the company reported adjusted earnings of $1.38 per share on revenue of $8.68 billion, raised its full-year adjusted profit forecast to roughly $5.38 per share, and outlined a reorganization aimed at cutting at least $1.5 billion in costs over the next two to three years. PayPal has also declared a quarterly cash dividend of $0.14 per share, with an ex-dividend date of Sept. 4 and a payment date of Sept. 25.
What’s not known yet
Whether the Advent-Stripe pursuit could restart, or whether another buyer could step in, is not something any of the parties involved has addressed. No source has confirmed that an active alternative sale process is underway. For now, PayPal is back to trading as a standalone public company, without the acquisition premium that had lifted its stock for much of the summer.