NEW YORK, Feb. 23 (GeokHub) — Digital payments giant PayPal is attracting preliminary takeover interest from potential buyers following a prolonged stock decline, according to a report by Bloomberg News.
The report, citing people familiar with the matter, said PayPal has held meetings with banks after receiving unsolicited expressions of interest. At least one large industry rival is reportedly evaluating a potential acquisition of the entire company, while other suitors are said to be interested in acquiring specific PayPal assets.
The discussions remain at an early stage and may not result in a formal transaction, Bloomberg noted. PayPal declined to comment, and the details could not be independently verified.
Shares Rebound Amid Speculation
PayPal shares rose approximately 7% in afternoon trading following the report. Despite the uptick, the company’s stock has fallen roughly 85% from its peak in mid-2021, reflecting mounting investor concerns over slowing growth and intensifying competition.
The company currently holds a market capitalization of more than $38 billion.
Leadership Shake-Up and Weak Forecast
Earlier this month, PayPal announced a leadership change, replacing CEO Alex Chriss amid concerns about execution and strategic direction. The board appointed Chair Enrique Lores as the new president and CEO.
The board said the pace of transformation under Chriss did not meet expectations, particularly as the company navigates slowing revenue growth and increased competition.
PayPal also issued a weaker-than-expected profit forecast for 2026, missing Wall Street projections and adding to investor unease.
Competitive Pressures Mount
Investors have grown wary of rising competition from Big Tech players such as Apple and Google, which continue expanding their digital payments ecosystems.
PayPal experienced explosive growth during the COVID-19 pandemic as consumers shifted toward online transactions. However, as retail spending cooled and macroeconomic pressures persisted — including elevated interest rates and high living costs — the company has struggled to maintain that momentum.
Management has pointed to softer discretionary spending and signs of a cooling labor market as factors weighing on transaction volumes.
