Stripe and Advent drop $50bn bid for PayPal as shares tumble 16 per cent on the news

PayPal shares dropped as much as 16 per cent in Friday premarket trading after the Advent-Stripe consortium abandoned its pursuit of the payments group, walking away from what would have been one of the largest leveraged buyouts ever recorded. The consortium had previously tabled a bid above $50 billion, which PayPal rejected as insufficient while negotiations over a higher figure were still under way. The stock had already surged over 40 per cent this quarter on takeover hopes, leaving PayPal's market capitalisation at around $52.6 billion.

Stripe, co-founded by Limerick brothers Patrick and John Collison, had been eyeing PayPal since February after a stock slump slashed its value.

PayPal removed chief executive Alex Chriss earlier this year, with Enrique Lores stepping into the role in March and committing to defined financial targets for each business line.

Advent and Stripe could reportedly yet return with a fresh offer if circumstances change.