PayPal's Board Thinks Stripe And Advent's $53 Billion Offer Is Too Low. The Rejection Could Set The Stage For A Bigger Bid.

PayPal has faced increased competition from digital wallets offered by Apple and Google, while Stripe has expanded aggressively in merchant services and financial infrastructure. (Credit: Reuters)

PayPal's board believes the $53 billion takeover proposal from Stripe and Advent International does not adequately value the payments giant even as the offer ranks among the largest technology acquisition attempts in recent years, according to a new report.

The board has not formally responded to the unsolicited bid and is continuing to evaluate the proposal alongside PayPal's ongoing turnaround efforts, people familiar with the matter told Reuters. Directors are also considering whether additional offers could emerge as they review the company's strategic options. The outlet added that the board's initial assessment is that the $60.50-per-share offer does not fully reflect PayPal's long-term value despite representing a premium over its recent trading price.