PayPal: Is Being Bought Out What's Best for the Company Right Now?
The initial offer may have set the floor for PayPal's potential value on the acquisition market.
Overview
On July 15, it was reported that privately held fintech company Stripe and private equity firm Advent International made a joint offer to acquire PayPal (NASDAQ: PYPL) for around $53 billion; the stock surged more than 17% on the news.
But would selling make sense for PayPal right now? From a company perspective, no. From a shareholder perspective, possibly -- just not right now.
Details
PayPal is in the middle of a turnaround; in February it appointed a new CEO, Enrique Lores, who was serving in the same position at HP. Typically, if you switch up leadership and reorganize your company, it's because you think the move can turn things around, and you want to give it more than a few months to see how it plays out.
Source
Originally published at www.fool.com.