Stripe is considering an acquisition of PayPal Holdings, according to sources familiar with the matter speaking to Bloomberg. Discussions remain in preliminary stages and may not result in a transaction. The report coincided with Stripe’s release of its annual letter, which detailed a tender offer valuing the private firm at $159 billion. This valuation represents a 74% increase over the previous year.
Participating investors purchasing employee shares include Andreessen Horowitz and Thrive Capital. The tender offer will also facilitate a repurchase of some of Stripe’s own stock. This latest funding round solidifies Stripe’s position as one of the most valuable private companies in the technology sector. The company, headquartered in Dublin, recently saw co-founder and CEO Patrick Collison inform CNBC that taking the company public is not an immediate priority.
In contrast, PayPal Holdings operates as a public entity with a market capitalization of approximately $40 billion. Its portfolio includes the primary PayPal service and Venmo. Following the acquisition reports, PayPal’s shares experienced a modest increase in trading value. Stripe declined to provide any comment regarding the potential deal.
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