Stripe is considering a deal to purchase some or all of PayPal Holdings, according to sources. Talks are in very early stages and may not result in an agreement.
This news coincides with the release of Stripe’s annual letter, which provided business updates. A key announcement was Stripe’s tender offer that values the company at $159 billion. This represents a 74 percent increase from the previous year.
Investors participating in this round to buy employee shares include Andreessen Horowitz and Thrive Capital. The letter also stated Stripe will buy back some stock.
This latest valuation reaffirms Stripe’s position as one of the most valuable private companies in the industry. The Dublin-based company’s co-founder and CEO, Patrick Collison, recently stated that going public is not a current priority.
PayPal Holdings, which includes the PayPal service, Venmo, and other units, is publicly traded with a market capitalization of approximately $40 billion.
Following reports of Stripe’s acquisition interest, PayPal’s stock experienced a slight increase. Stripe has declined to comment on the matter.