PayPal shares were briefly halted due to volatility and are now up 9% after a Bloomberg report said the digital payments firm is attracting takeover interest from potential buyers, as the stock slid to a decade-low. The report, based on unnamed sources, has not been confirmed by PayPal.
Interest in a PayPal takeover is in the early stages, according to people familiar with the matter. They say the company has met with banks amid unsolicited interest from suitors.
The sources described one of the suitors as a "large rival" looking to purchase the entire digital payments firm, while others are only interested in certain PayPal assets.
Before the news hit, PayPal shares in New York were at 2017 lows (with a market capitalization of around $37 billion) and down more than 85% from the 2021 high of $291.48. Year to date, shares are down 30%.
PayPal was one of the pioneers of digital payments, but has been losing market share as consumers shift to alternatives like Apple Pay and Google Pay.
Bloomberg notes a leadership shakeup of the firm is underway, with board chair Enrique Lores set to become president and CEO on March 1, following the ouster of Alex Chriss earlier this month. Recent performance has disappointed, with Q4 profit and revenue missing estimates and signs of a continued slowdown in payment volume."
Source: ZeroHedge News
