Advent and Stripe Drop $50B PayPal Takeover Pursuit

Bloomberg News reported that Advent International and Stripe have dropped their pursuit of PayPal Holdings, ending a potential deal valued at roughly $50 billion. The two companies had been exploring an acquisition of the payments giant, but the effort has now been abandoned.

The news puts an end to speculation around PayPal, one of the oldest names in online payments. The company has been dealing with slower revenue growth and intense competition from fintech rivals. A buyout would have been a major event, but now PayPal will continue operating independently.

Stripe, which handles payments for countless online businesses, and Advent, a private equity heavyweight, had formed a team to acquire PayPal. The deal would have ranked among the largest in fintech, but the reasons for calling it off were not provided in the report.

Neither PayPal, Advent, nor Stripe has issued a public statement. The reaction in financial markets may come when trading begins, and PayPal's shares could see movement. The collapse of the pursuit leaves PayPal's future in the hands of its management and board.