Stripe is considering acquisition of all or parts of PayPal, Bloomberg News reports

Feb 24 (Reuters) - Payments firm Stripe is considering an acquisition of PayPal PYPL.O or parts of the digital payments pioneer, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Stripe, which is privately held and is among the industry's most valuable companies, has expressed a preliminary interest in a potential acquisition of PayPal or its assets, the report said.

PayPal shares closed nearly 7% higher. The company has a market valuation of over $40 billion, according to LSEG data.

PayPal and Stripe declined to comment on the report. Reuters could not independently verify the report.

Stripe was valued at $159 billion in a tender offer for employees and shareholders on Tuesday.

The firm's services allow enterprises to accept payments, make payouts and automate financial processes.

Earlier this month, PayPal ousted CEO Alex Chriss, who had been brought in to guide the payments company through a period of slowing growth and rising competition, after it issued a muted profit outlook for 2026 that was below Wall Street estimates by a wide margin.

The board of the company said the speed of transformation and execution under Chriss had fallen short of its expectations. It appointed Chair Enrique Lores as president and chief executive.

PayPal has also pointed to softer retail spending, as high interest rates, stubbornly high living costs and early signs of a weakening job market have hit discretionary purchases and led to prioritizing essentials.

Investors of the company have for years worried that aggressive moves by Big Tech players such as Apple and Google into digital payments could erode its share in its core business, even as it remains the long-standing leader.

The company had benefited from a pandemic-driven shift to online transactions, but growth has cooled since then and it has struggled to maintain that momentum despite a multi-year turnaround effort.