Feb 24 (Reuters) – Payments firm Stripe is considering an acquisition of PayPal or parts of the digital payments pioneer, Bloomberg News reported \u200con Tuesday, citing people familiar with the matter.<\/p>\n
Stripe, which is privately \u200cheld and is among the industry’s most valuable companies, has expressed a preliminary interest in a \u200bpotential acquisition of PayPal or its assets, the report said.<\/p>\n
PayPal shares closed nearly 7% higher. The company has a market valuation of over $40 billion, according to LSEG data.<\/p>\n
PayPal and Stripe declined to comment on the report. Reuters could not \u200cindependently verify the report.<\/p>\n
Stripe was \u2060valued at $159 billion in a tender offer for employees and shareholders on Tuesday.<\/p>\n
The firm’s services allow enterprises to accept payments, \u2060make payouts and automate financial processes.<\/p>\n
Earlier this month, PayPal ousted CEO Alex Chriss, who had been brought in to guide the payments company through a period of \u200bslowing growth \u200band rising competition, after it issued \u200ba muted profit outlook for 2026 \u200cthat was below Wall Street estimates by a wide margin.<\/p>\n
The board of the company said the speed of transformation and execution under Chriss had fallen short of its expectations. It appointed Chair Enrique Lores as president and chief executive.<\/p>\n
PayPal has also pointed to softer retail spending, as high interest rates, stubbornly \u200chigh living costs and early signs of \u200ba weakening job market have hit discretionary purchases \u200band led to prioritizing essentials.<\/p>\n