A consortium comprising buyout firm Advent International and payments processor Stripe has abandoned its pursuit of PayPal Holdings, sending shares in the digital payments company sharply lower in after-hours trading.
The consortium had previously offered more than $50 billion for PayPal, Bloomberg News reported on Thursday, citing people familiar with the matter.
PayPal shares fell 12.7% to $53.66 in extended trading as of 23:32 ET following news that the group had dropped its pursuit.
Interest in acquiring PayPal emerged after the company’s shares suffered a sharp decline, with Stripe considering a purchase of part or all of the business.
The takeover speculation, combined with stronger-than-expected second-quarter earnings, has since helped push PayPal’s shares more than 40% higher this quarter. The company’s market value stood at about $52.6 billion, according to Bloomberg.
PayPal replaced Chief Executive Alex Chriss with Enrique Lores in March as the digital payments pioneer seeks to revive growth and modernise its business amid competition from Apple and Alphabet.
Despite abandoning its current pursuit, the consortium could return with another offer if circumstances change, Bloomberg reported.
