PayPal Holdings, the digital payments giant, is not currently engaged in acquisition discussions with Stripe or any other potential buyer, despite recent speculation about a possible takeover by the fintech firm.
Executives at the payments company have spent months working with advisers to prepare defenses against a potential activist investor campaign or an uninvited acquisition bid, according to a Semafor report.
Bloomberg reported this week that privately held payments company Stripe was exploring a potential acquisition of all or part of PayPal. However, Semafor said such a deal appears unlikely, noting that a new chief executive is set to take over next week, a move that would be unusual if a near-term sale or restructuring were imminent.
Defensive preparations against a potential activist campaign began under former Chief Executive Alex Chriss, who departed earlier this year. His successor, Enrique Lores, is scheduled to assume the role next week.
The report added that any transaction would face significant financing hurdles. As a private company, Stripe cannot use publicly traded stock as acquisition currency and would likely need substantial debt commitments to pursue a deal.
Private companies rarely acquire large public firms without complex structures or clear support from the target’s board and management.
Stripe’s interest in PayPal is viewed as strategic, driven by PayPal’s large global customer base and established payments infrastructure. Still, any formal talks would likely depend on leadership stability at the company before progressing.