Stripe and private equity firm Advent International have made a $53 billion offer to buy PayPal. The bid values the payments company at $60.50 per share.
San Francisco-based Stripe proposed the deal alongside Advent, according to people familiar with the matter. The offer represents a 28 percent premium to PayPal’s Tuesday closing price of $47.37.
PayPal shares rose sharply in pre-market trading after the news emerged. The stock gained more than 18 percent to $56.10 in one report and over 21 percent to $57.3 in another.
The bid follows an earlier expression of interest. PayPal has been reluctant to engage with the offer so far. Neither PayPal, Stripe nor Advent responded immediately to requests for comment.
Investor Michael Burry called the price too low and said a fair value would be closer to $100 per share. He described the proposal as an opening bid.
