Private payment processing company Stripe is reportedly exploring a possible acquisition of digital payment pioneer PayPal or portions of its business. The news sent PayPal's stock price surging 7% in after-hours trading on Tuesday.
A major shake-up could be brewing in the digital payments industry as private company Stripe reportedly explores acquiring PayPal or select parts of the established payment platform, according to a Bloomberg News report released Tuesday.
Sources with knowledge of the discussions told Bloomberg that Stripe, one of the payment processing sector’s highest-valued private companies, has shown initial interest in potentially purchasing the digital payment veteran or specific assets from its portfolio.
The market responded immediately to the acquisition rumors, with PayPal’s stock price climbing 7% during late-afternoon trading sessions. Current market data from LSEG shows PayPal maintains a valuation exceeding $40 billion.
When contacted for comment, PayPal representatives did not provide an immediate response to inquiries, while Stripe officials chose not to comment on the potential deal. The report has not been independently confirmed through additional sources.
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