Stripe is exploring a potential acquisition of some or all of PayPal Holdings, according to sources cited by Bloomberg, although the discussions are in very early stages and may not lead to a deal.
This development coincides with Stripe’s release of its annual letter, providing business updates. The key highlight is Stripe’s tender offer valuing the company at $159 billion, marking a 74% increase from the previous year. Investors participating in the employee share purchase include Andreessen Horowitz and Thrive Capital. Stripe also plans to repurchase some stock.
This valuation reaffirms Stripe’s standing as one of the most valuable private companies in the industry. Headquartered in Dublin, Stripe’s co-founder and CEO, Patrick Collison, recently told CNBC that going public was not a priority. PayPal Holdings, encompassing PayPal and services like Venmo, is a publicly traded entity with a market cap of approximately $40 billion.
Following reports of Stripe’s interest, PayPal’s stock slightly increased. Stripe did not comment.