Quoth the Raven
· QTR’s Fringe Finance
· July 15, 2026 at 13:34
· ⏱ 2 min read
| Read on Substack ↗
Summary
PayPal has received a $53.4 billion all-cash bid from Stripe and Advent International at $60.50/share, which the author views as an opening offer that undervalues the company. The author argues that PayPal's single-digit earnings multiple, massive user base, and strong free cash flow make it a natural takeover target, and Michael Burry's public call for a higher bid could trigger a bidding war. The event highlights that depressed large-cap fintech names may be attractive acquisition candidates.
•Stripe and Advent International submitted a $53.4 billion all-cash offer for PayPal at $60.50 per share, a 28% premium to the prior close.
•The proposal includes roughly $50 billion of committed financing and $17 billion of equity from the buyers.
•PayPal's board is expected to meet on July 20 to discuss the offer; the company has not publicly responded.
•Michael Burry publicly stated the bid is too low, calling it an 'opening bid' and indicating he is not selling.
The article presents a bullish case for PayPal as a deeply undervalued payments franchise trading at ~8x forward earnings with significant free cash flow and a recognizable brand. The reported bid plu
The article presents a bullish case for PayPal as a deeply undervalued payments franchise trading at ~8x forward earnings with significant free cash flow and a recognizable brand. The reported bid plus Burry's call for a higher price suggests potential upside if a bidding war emerges or if the current offer is sweetened. Author's repeated positive framing ('one of my favorite value ideas', 'low bar') supports watching for further developments.
Risk: The bid may fail to close due to regulatory hurdles, or no higher bid materializes, leaving the stock to revert to pre-offer levels.
This newsletter, published July 15, 2026,
features Quoth the Raven
discussing PYPL.
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