PayPal’s Board Plays Hardball: Rejects $53 Billion Bid, Hires Goldman and Evercore as Earnings Test Nears
Published on 07/21/2026 at 05:42 | Redaktion boerse-global.de
PayPal’s board has officially turned down the all-cash $60.50-per-share offer from Stripe and private-equity firm Advent International, but the move is less a door-slam than a tactical gambit for a better price. The decision, reached during a specially convened meeting on July 20, 2026, was accompanied by the appointment of Goldman Sachs and Evercore as financial advisors — a clear signal that the board is prepared to push aggressively for a higher valuation.
Sources familiar with the board’s thinking indicate that directors are angling for a price close to $70 a share, nearly $10 above the rejected bid. At $60.50, the offer valued PayPal at roughly $53.4 billion, backed by a $50 billion debt facility arranged by JPMorgan and Morgan Stanley. But the board contends that figure fails to capture the company’s long-term potential, particularly as it navigates a sweeping restructuring under CEO Enrique Lores.
Lores, who took the helm in March 2026, is driving a cost-cutting program aimed at saving $1.5 billion annually, including a 20% reduction in headcount. That restructuring — combined with PayPal’s growing stablecoin business — forms the core of the board’s argument that the company is worth more than what’s currently on the table. Investor Michael Burry, a vocal PayPal shareholder, lent his support to that view, writing on his Substack that the $60.50 offer represents just 1.21 times his IV15 valuation metric — “simply too low.” Burry’s own fair-value range spans $75 to $115 per share, and with a control premium at the lower end, he pegs a realistic bid at roughly $100.
A key wildcard in the valuation debate is PayPal’s stablecoin, PYUSD. Issued by Paxos Trust Company and launched in August 2023, PYUSD is now available in roughly 70 markets through PayPal and Venmo, with an on-chain market capitalization of about $2.85 billion as of mid-July. Analysts argue that this asset gives PayPal a strategic edge that is not fully reflected in the rejected offer. Stripe, through its Bridge subsidiary, already operates a federally licensed stablecoin infrastructure and has integrated the x402 protocol on Base for autonomous AI-agent payments. Adding PYUSD’s distribution network would create a programmable payments ecosystem with few private-sector parallels.
Should investors sell immediately? Or is it worth buying PayPal?
The market has already priced in a high probability of a sweetened deal. PayPal’s stock surged more than 34% over the past 30 days and roughly 20% in the last week alone, though it still sits about 29.7% below its 52-week high of $70.78 (converted from €70.78). The 14-day relative strength index stands at 81.6, deep in overbought territory, underscoring the velocity of the recent rally. Investors appear to view the initial bid as an opening move and expect further haggling.
That expectation will be put to the test on July 28, when PayPal reports second-quarter earnings. The company has guided for low-single-digit revenue growth, a slight contraction in transaction margins, and a roughly 9% decline in adjusted earnings per share year-over-year. Analysts are forecasting EPS of $1.28 on revenue of $8.52 billion. If the numbers beat this modest bar, the board gains ammunition to hold out for a higher price. But if they confirm ongoing market-share erosion — especially to Apple Pay, which has gained 10 percentage points in the U.S. core market — the negotiating leverage could flip.
The bear case is not trivial. Should the earnings disappoint, Stripe and Advent may walk away rather than raise their bid. Both partners have already secured $50 billion in debt financing, but a retreat would likely send the stock tumbling toward the analyst consensus target of $45.01 (€44.72 200-day moving average support), roughly 10% below current levels. Conversely, a strong report could spark a bidding war, with the board’s $70 target suddenly looking conservative.
PayPal at a turning point? This analysis reveals what investors need to know now.
With a self-imposed end-of-July deadline looming and an overbought RSI signaling heightened volatility, the next week will be pivotal. PayPal’s board has drawn its line in the sand; whether the earnings report reinforces that stance or forces a retreat will determine the final price for one of fintech’s most contested assets.
Ad
PayPal Stock: New Analysis - 21 July
Fresh PayPal information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
