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Rate Of ReturnPayPal's current EV/EBITDA is 5.46x, and it is still generating robust cash flow, but its trading valuation is below historical multiples, which is very notable.
However, the acquisition logic may depend less on price and more on business overlap.
Stripe is essentially acquiring a competitor with parallel infrastructure, which makes the synergies less obvious than a typical vertical integration.
So what strategic capabilities can Stripe gain that it currently lacks? Or is this rumor just to facilitate big funds to pump the stock price and exit?
$Paypal(PYPL.US)The alliance between PayPal and Stripe has Block, which is about to release its earnings report, trembling with fear. The question is, will antitrust approval come through? If acquired by Stripe, a reasonable price should be at a $75-80 premium, otherwise minority shareholders would suffer too much.
By the way, Stripe is also an investment by Peter Thiel.
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