PayPal drawing interest from mega-cap tech firms, banks, says Raymond James

Bloomberg reported that PayPal (PYPL) is drawing takeover interest from banks and at least one large rival, with some parties potentially targeting the whole company and others specific assets, Raymond James tells investors in a research note. While details are limited, the most plausible buyers appear to be mega-cap tech firms such as Alphabet (GOOG) (GOOGL), Meta (META), Amazon (AMZN), Microsoft (MSFT), and Apple (AAPL), the firm says, adding that a private equity deal seems unlikely given the $50B+ size, and a bank acquisition also appears improbable. The probability of an outright sale looks low, and a transaction would not necessarily resolve PayPal’s underlying challenges, particularly ongoing share loss in Branded, though the reported interest is not entirely surprising, Raymond James argues. The firm has a Market Perform rating on the shares.

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