alt Hacker NewsStripe reportedly makes offer to acquire PayPal
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Not good. Stripe rejects anyone even close to the regulated cannabis space (with no room for appeal) but PayPal will accept these tranctions. So, this would put a non-zero amount of businesses (that don't even touch that deadly, deadly plant) in a tight spot with this monopolisation of the industry.
> Stripe hit a $159 billion valuation on Tuesday and said it was on track to reach an annual run rate of $1 billion this year.
Wow! This is the quality of reporting from CNBC? The $1B ARR number is just for Stripe's Revenue products (Billing, Invoicing, etc). That doesn't include their main business (payments-related products).
Stripe and PayPal have pretty different sets of tradeoffs. There's plenty of reasons to dislike both, but at least right now you get a choice between them. I really hope they won't merge.
Stripe's valuation decreased from $95 billion in 2021 to around $50 billion in 2023.
I am curious what changed in 2 years to reach $159 valuation and assuming deal goes through, how they fund PayPal buyout.
What does this mean for existing users, and the features of PayPal? Which is sending money between family & friends and withdrawing money to my bank account for free.
That would mean they would be acquiring Venmo as well?
I feel like PayPal is slowly degrading, I hope Stripe would find a way to modernize it.
I used to live in the United States and recently moved to Germany. Using PayPal for payments is a lot more common here than Germany. In fact I connected my Uber account to my credit card via PayPal and my partner pays for a lot of things online via PayPal.
PayPal is also used for transferring money between friends and family quite frequently
That feels like it would be a pretty significant blunder for stripe. Paypal is everything that stripe isn't. Legacy, confusing, slow, expensive and hidebound.
Will anyone be getting arrested for insider trading? It spiked on rumors yesterday when nearly everything else was collapsing.
Stripe is overvalued by about 10x judging by Block and PayPal.
Best case scenario: Stripe gets larger, gets bloated, slower, eats some competitors, becomes their competitors. The street presses down on their valuation as their growth races toward single digits. Congratulations.
Block is fetching ~13 times op income. PayPal is fetching ~7 times op income.
Coinbase next?
When’s the last time a private company acquired a public company? Crazy!
> PayPal’s stock has plummeted over the last year as it faces slowing growth and mounting competition in the digital-payments market.
What is the mounting competition? Does Paze factor into any of this?
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Now how can a company that launched many people’s successful career of meddling in everyone’s affairs be acquired by a company that was launched 10 years later, interesting.
Stripe is a pain in the ass as a buyer, so I really hope they won't be able to acquire competitors and become a de facto monopoly.
For example, when you're traveling abroad and can't buy a service online with your card, you can be 95% sure that Stripe is the payment processor.