PayPal Holdings (NASDAQ:PYPL) is attracting preliminary takeover interest from potential suitors following a prolonged share price decline that has significantly reduced its market value, Bloomberg News reported on Monday.
The San Jose-based digital payments pioneer has reportedly held meetings with investment banks to weigh unsolicited interest.
While at least one major industry rival is exploring a potential acquisition of the entire company, other interested parties have expressed interest in specific business units or assets, according to people familiar with the matter.
The takeover speculation comes as PayPal’s stock continues to navigate a turbulent period.
Over the past 12 months, the company’s share price has declined nearly 46%, hit by a combination of slowing growth in its branded checkout business and intense competition from Apple Pay and Block.
Following a sharp sell-off in early February 2026—triggered by a weaker-than-expected 2026 profit outlook and news of a leadership transition—the stock fell to multi-year lows.
The report provided a spark of optimism for the fintech sector.
PayPal shares rose as much as 9% in late-morning trading Monday, bringing the company’s market capitalization to approximately $38.4 billion.
Despite the surge, the sources cautioned that discussions are at an early stage and may not result in a formal offer.
PayPal representatives have declined to comment on the speculation.