PayPal Fields Buyout Approaches After Steep Share Decline, Bloomberg Reports
February 24 2026
PayPal Holdings (NASDAQ: PYPL) has entered talks with financial institutions to evaluate unsolicited acquisition proposals after a year‑long slide in its share price left the payments company trading far below its recent highs. Bloomberg cited “people familiar with the matter” as saying that the fintech giant is meeting with banks and other investors to discuss potential buyout structures, some of which could involve taking over the entire business while others target specific assets.
Share price reaction and background
The news sparked an intraday rally, with PayPal stock gaining just over 6 % on Monday. The uptick, however, only partially offsets a 46 % decline the stock has suffered over the past twelve months, reflecting investor unease after a weak fourth‑quarter 2025 earnings report and a leadership reshuffle.
- Leadership change: Former CEO Alex Chriss, who championed PayPal’s push into digital assets, was removed in early February. Enrique Lores, currently chief executive of HP, was appointed to steer the company through the next phase of its turnaround.
- Strategic pivot: Under Chriss, PayPal began positioning stablecoins as a hedge against the “innovator’s dilemma” – the risk that legacy‑focused firms fall behind disruptive technologies. The new leadership inherits a growing crypto business that could become a focal point for suitors.
Crypto initiatives that may attract interest
Despite an uneven overall recovery, PayPal’s cryptocurrency arm has delivered measurable milestones:
| Initiative | Status | Market impact |
|---|---|---|
| PayPal USD (PYUSD) stablecoin | Launched 2022, now >$4 bn market cap | Ranks 6th globally among stablecoins, trailing USDT, USDC, USDe, DAI and USD1 |
| Shareable crypto payment links | Introduced early 2026 | Allows peer‑to‑peer crypto transfers via simple URLs, expanding use beyond wallet‑to‑wallet |
| “Pay with Crypto” settlement service | Rolled out 2025 | Enables merchants to accept digital assets while receiving fiat, acting as a bridge to on‑chain settlement |
The PYUSD launch has helped PayPal carve out a niche in the stablecoin arena, while the newer P2P link feature and merchant settlement tool broaden its crypto footprint. Neither development was highlighted in the latest earnings release or the subsequent analyst call, suggesting they remain a secondary narrative for the company’s management.
Why investors may be circling
- Valuation discount: The 46 % share‑price erosion has created a sizable valuation gap relative to PayPal’s revenue base, making the company a more attractive acquisition target for competitors looking to expand their digital‑payments footprint.
- Crypto assets as growth engines: The stablecoin and merchant‑crypto services provide recurring fee revenue and a foothold in a rapidly maturing market, which could be valuable to firms aiming to accelerate their own crypto strategies.
- Consolidation trend: The payments sector has seen increasing M&A activity as larger players seek to integrate complementary technologies and user bases. An industry rival reportedly exploring a full takeover underscores this dynamic.
Nevertheless, Bloomberg cautioned that the discussions are in their infancy and no deal is guaranteed. The involvement of unnamed investors and banks indicates a broad scouting process rather than a single, concrete offer.
Analyst perspective
- Strategic fit: Experts note that an acquisition could enable a buyer to instantly inherit PayPal’s extensive merchant network and its nascent crypto infrastructure, potentially reducing time‑to‑market for digital‑asset services.
- Regulatory considerations: Any transaction would face scrutiny from antitrust authorities, especially given PayPal’s sizable market share in online payments and the growing regulatory focus on stablecoins.
- Execution risk: Integration of PayPal’s legacy payments platform with a new owner’s systems could prove complex, and the business’s recent leadership turnover adds uncertainty to post‑deal governance.
Key takeaways
- Buyout interest materializes: Unsolicited takeover approaches have emerged after PayPal’s share price fell roughly 46 % over the past year.
- Shares bounce modestly: The market reacted positively, buoying the stock by more than 6 % on the news, yet the price remains well below its 2024 peak.
- Crypto assets could be the hook: PayPal’s stablecoin (PYUSD) and new crypto‑payment tools have positioned the firm as a modest but growing player in the digital‑asset space, potentially increasing its attractiveness to bidders.
- Leadership transition underway: Enrique Lores, the former HP chief executive, now leads PayPal, tasked with stabilising performance and capitalising on the crypto initiatives.
- Deal outlook uncertain: Talks are early‑stage, with no guarantee of a completed transaction; any forthcoming deal would need to navigate valuation, regulatory, and integration challenges.
As the payments landscape continues to evolve, PayPal’s blend of traditional merchant services and emerging crypto capabilities may prove either a catalyst for a strategic acquisition or a foundation for an independent turnaround under its new CEO. The coming weeks should clarify whether suitors move beyond exploratory discussions toward concrete offers.
Source: https://cointelegraph.com/news/paypal-buyout-approaches-share-decline-report?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
