PayPal Slides After Report Says Stripe Not In Takeover Talks

Bloomberg’s multi-day storytelling began late Monday morning with a report that a “large rival suitor” and other firms were circling PayPal in a potential takeover bid. By late Tuesday in the cash session, the outlet reported that payment processor Stripe had expressed interest in the platform.

Now, just moments ago, Semafor reports “PayPal isn’t currently in talks to sell itself — to Stripe or anyone else — and has been working for months with bankers to prepare for a potential activist campaign or unwanted takeover bid.”

Semafor’s report, like Bloomberg’s, was based on people familiar with the matter, which makes the gap between the two reports very notable.

Here’s more from Semafor:

The process followed a steep decline in PayPal shares that executives worried could leave the company vulnerable, the people said. Bankers began working with PayPal under former CEO Alex Chriss, who was ousted earlier this year. Bloomberg reported that Stripe is considering an acquisition of all or parts of PayPal this week. PayPal declined to comment. Incoming CEO Enrique Lores officially starts next week.

Bloomberg’s reporting sent PayPal shares in New York up nearly 19% in the first half of the week. However, those gains are beginning to be eroded by the Semafor report, with the stock down about 4% as of 11:25 ET.

Who to believe: Bloomberg or Semafor?