PayPal draws buyer interest as stock rout erases nearly half its value – CNBC TV18

PayPal Holdings Inc. has attracted preliminary takeover interest after a steep decline in its share price erased nearly half its market value over the past year, according to a Bloomberg report.

Shares of the San Jose, California-based digital payments company rose as much as 9.7% on the news. The stock was up about 6.6% at $44.38 in afternoon trading on Monday, February 23, valuing the company at roughly $40.9 billion.

Bloomberg reported that PayPal has held meetings with banks following unsolicited interest from potential buyers. At least one large industry rival is evaluating a bid for the entire company, while other interested parties are exploring specific assets, Bloomberg’s sources said.

However, they cautioned that discussions remain at an early stage and may not result in a deal.
Founded in the late 1990s, PayPal was a pioneer in digital payments but has struggled more recently as consumers shift toward alternative platforms. The company’s shares had fallen about 46% over the past 12 months before Monday’s rebound.

Leadership changes add to the uncertainty as Enrique Lores, currently board chair, is set to assume the roles of president and chief executive officer on March 1. He faces the task of reviving growth and addressing competitive pressures from rivals such as Apple Pay and Google Pay.

Former CEO Alex Chriss was removed earlier this month after his turnaround efforts failed to gain traction, as fourth-quarter revenue and profit missed analyst estimates and payment volumes continued to slow.

Analysts have pointed to PayPal’s underlying network strengths. Mizuho Securities said the company is “deeply undervalued given that it is one of four globally recognised payment networks,” highlighting its nearly $2 trillion in annual transaction volume and its ownership of Venmo, described as the “most prominent US P2P network,” according to Bloomberg.

KBW analysts told clients that PayPal’s network assets are scarce and strategically valuable, particularly for firms seeking to expand their role in emerging “agentic commerce,” Bloomberg reported.

The reported interest comes amid broader pressure on delivery, payments and software stocks after Citrini Research published a report outlining risks artificial intelligence may pose to segments of the global economy.