Why PayPal Shares Are Skyrocketing Higher This Week
PayPal's shares are spiking this week after months of acquisition rumors culminated in an offer.
Overview
Shares of popular digital payments platform, PayPal (NASDAQ: PYPL), soared 23% this week (as of noon ET on Friday) after payments peer Stripe and private equity firm Advent International offered to buy the company for $60.50 per share. After months of speculation that a union between the companies might be in the works, the market finally has a tangible offer price to digest.
However, while shares have soared on the potential deal, it seems to be far from a "lock" to reach the finish line. Reuters reported that PayPal's board -- according to a person familiar with the matter -- believes the deal undervalues the company's long-term potential as it executes upon its turnaround strategy. The company's board is not alone in this thinking.
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Originally published at www.fool.com.