Payment Giant PayPal Becomes Acquisition Target After Stock Plunges 46%: Report
Following a year of declining share prices, PayPal is now receiving acquisition proposals from competitors considering both partial asset purchases and complete company takeover, Bloomberg reports.
The payments processing behemoth PayPal Holdings has become the subject of unsolicited acquisition interest following an extended decline in its stock value that has pushed the company's shares significantly below their previous peaks, according to reports suggesting that industry competitors are seeking to expand their presence in the digital payments sector.
According to Bloomberg's Monday report, which cited individuals with knowledge of the situation, PayPal has engaged in discussions with financial institutions to evaluate takeover proposals from investors who have not been publicly identified. A prospective buyer characterized as a competing company within the industry is reportedly considering purchasing PayPal in its entirety, while additional interested parties have communicated their desire to acquire particular divisions or assets of the company.
The sources indicated that no transaction is assured at this point, and the conversations are still in their preliminary phases, according to the report.
The stock price experienced a significant increase after the news broke, though the gains only partially compensate for what has been a difficult period for shareholders. According to market data, PayPal's stock price had declined approximately 46% during the 12-month period preceding Monday's report. The shares registered gains exceeding 6% on Monday.
The financial services firm has shifted its strategic focus toward cryptocurrency and blockchain technology as a central component of its recovery plan. Former CEO Alex Chriss championed stablecoins as a solution to what he characterized as the "innovator's dilemma" — the danger that well-established corporations become overly dependent on their existing product offerings and fail to recognize transformative technological developments.
At the beginning of this month, Chriss was dismissed from his position after the company reported underwhelming financial performance for the fourth quarter of 2025. Enrique Lores, who currently serves as CEO of HP, was selected to guide PayPal during its upcoming transformation period.
Despite struggles, PayPal's crypto push gains traction
While PayPal's comprehensive restructuring efforts have shown mixed outcomes, the company's venture into cryptocurrency and digital assets has generated concrete and quantifiable achievements.
The company's stablecoin pegged to the U.S. dollar, PayPal USD (PYUSD), has exceeded $4 billion in total market capitalization, establishing its position as the sixth-largest stablecoin in the worldwide market. According to current market data, it currently ranks behind only USDt (USDT), USDC (USDC), Ethena USDe (USDe), Dai (DAI) and World Liberty Financial USD (USD1).
In addition to creating and issuing its proprietary stablecoin, PayPal has significantly broadened its cryptocurrency payment capabilities and infrastructure. The payments platform most recently unveiled shareable payment links that enable customers to transmit cryptocurrencies and stablecoins via peer-to-peer transfer mechanisms, extending accessibility beyond conventional wallet-to-wallet transaction methods.
During the earlier part of 2025, PayPal additionally rolled out "Pay with Crypto," a settlement service built on blockchain technology that enables merchants to receive payments in digital assets while obtaining their funds in traditional fiat currency. This product represents PayPal's strategic effort to establish itself as an intermediary connecting conventional payment systems with blockchain-based settlement infrastructure.
Despite these developments, neither of these cryptocurrency initiatives received attention in the company's earnings release earlier this month, nor were they discussed during the subsequent conference call between management and financial analysts.