PayPal Attracts Takeover Interest After Stock Slide, Bloomberg Reports

Feb 23 (Reuters) – PayPal is reportedly attracting takeover interest from potential buyers following a significant drop in its stock price, Bloomberg News reported on Monday, citing sources familiar with the matter.

The digital payments giant has reportedly held meetings with banks due to unsolicited interest from suitors. At least one large competitor is said to be considering acquiring the entire company, while other suitors are only interested in specific PayPal assets.

Preliminary Stage of Takeover Talks

Buyer interest in PayPal is still at an early stage and may not necessarily result in a transaction, according to Bloomberg’s report.

PayPal, which currently holds a market capitalization of over $38 billion, declined to comment on the report. Reuters was unable to independently verify the details.

Stock Price Recovery and Decline Since Peak

Shares of PayPal were up by 7% in afternoon trading. However, the company’s stock has seen a dramatic 85% decline from its record high in mid-2021. The company has faced increasing pressure from slowing growth and growing competition, particularly from major tech firms like Apple and Google.

Leadership Changes and Weak Forecasts

Earlier this month, PayPal replaced CEO Alex Chriss, who was appointed to guide the company through a period of slower growth and rising competition. The company also issued a weak profit forecast for 2026, which fell well below Wall Street's expectations.

The company’s board, which named Enrique Lores as the new president and CEO, stated that the pace of change under Chriss did not meet their expectations.

Declining Retail Spending and Increased Competition

PayPal also pointed to a decline in retail spending as consumers, burdened by high interest rates and living costs, continue to cut back on discretionary purchases. The company has been dealing with heightened competition from tech giants entering the payments industry, potentially threatening PayPal’s dominance.

While the company saw a surge in use during the COVID-19 pandemic as more consumers turned to digital payments, growth has since slowed, and PayPal has struggled to maintain the momentum despite a multi-year turnaround strategy.